- EUR / USD remains on the defensive at levels below 1.18.
- The pair recovers from yearly lows in the 1.1760 region.
- German, EMU flash CPI will take center stage by the end of the week.
The euro remains under pressure and forces the EUR/USD to maintain the offered tone below 1.1800 at the beginning of the week.
EUR / USD attentive to data
After another visit to yearly lows around 1.1760 during early trading, EUR / USD manages to regain some traction, although it remains stuck within negative territory and below the 1.18 barrier.
The pair reverses Friday’s decent rally as investors continue to favor the dollar amid the current context of new and tighter restrictions in Europe amid the rebound in coronavirus cases and the slow launch of the vaccine.
Nothing scheduled on the euro agenda on Monday, while the Dallas Fed index will be the only release alongside the FOMC’s C. Waller speech on “Federal Reserve Independence.” Moving forward, the spotlight is seen to shift to advanced inflation figures in Germany and the wider euro zone for the month of March on Tuesday and Wednesday, respectively.
What to look for around EUR
EUR / USD remains under heavy pressure despite Friday’s rebound from fresh yearly lows at the 1.1760 zone. The sharp pullback in the pair came alongside the strong persistent performance of the dollar, which has been undermining the pair’s constructive outlook in recent weeks. The deterioration of morale in the euro zone along with the poor pace of the launch of the vaccine in the region and the superior performance of the US economy (compared to its G10 peers) have been contributing to the renewed position offered on the single currency. However, the firm hand of the ECB (despite some verbal concerns) in combination with the expected rebound in economic activity in the region in the post-pandemic stage will likely prevent a much deeper pullback in the long-term pair.
Technical levels
At the moment, the index is losing 0.06% at 1.1786 and faces the next support at 1.1761 (March 25, 2021 low) seconded by 1.1745 (November 23, 2020 low) and finally 1.1602 (November 4, monthly low). ). On the upside, a breakout of 1.1989 (March 11 weekly high) would target 1.2000 (psychological level) on its way to 1.2025 (50 SMA).
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
