EURUSD FORECAST: AHEAD OF THE FED AND ECB
EURUSD parity is holding the lower ground right below the 1.2100 level but remains well above the 100-DMA support at 1.2056 ahead of Lagarde’s press conference and the FOMC decision.
The US dollar tracks the resurgent demand in the Treasury yields, weighing on the main currency pair.
Upbeat US CB Consumer Confidence data fuelled the rally in the Treasury yields, which lifted the dollar. The index rose this month to 121.7 from 109.0, beating expectations by a big margin.
On the other side, the Euro remains not affected by the German government’s upward revision to the economy’s 2021 growth forecasts, as surging COVID-19 cases outweigh.
“No surprises are expected this time, although investors expect Jerome Powell to acknowledge the improvement in the employment sector and hence, offer a more hawkish speech. Tightening will likely remain off the table,” analysts said.
An ascending support line, near 1.2065 will test the short-term EURUSD parity declines ahead of the key 100-day SMA level near 1.2055.
As an alternative, an upside clearance of the stated resistance line close to 1.2115 should successfully cross 1.2116 level before directing the run-up towards the 1.2200 thresholds.