The Euro is selling off against the US Dollar in a dramatic fashion. Despite the positive sentiment, the currency remains weak against the dollar. Hence, a technical view may be necessary to determine its future direction. Using this forecast, you will be able to determine whether it will go up or down. As a result, the pair could end the quarter near 1.21. The Euro would most likely close below the 1.2180 level. However, if it closes above it, the downward push would be gradual and would continue towards the 1.2350 level.
Moreover, the ECB will also be required to make necessary decisions on how to react to the coronavirus. During the time of the outbreak, the currency might drift lower due to the lack of action. The ECB should take measures to stabilize the currency in the event of a virus outbreak. Therefore, investors must be aware of the ECB’s decision regarding the epidemic. The ECB will have to adopt an appropriate policy to help the European Union recover from the economic damage caused by this virus.
The European currency is a risky investment, and a sharp decline in its value may cause a rise in its value. A stronger Euro would mean a lower US dollar, and vice versa. In addition, a stronger US dollar could cause a reduction in the inflation rate in the Eurozone. Likewise, the US currency might experience a similar trend. In the near future, the Euro will experience a surge in demand, which would lead to an increase in its demand.
Considering this scenario, the currency pair may recover from the latest volatility, and could even reverse its downtrend. A break beneath the support line could lead to a renewed bearish vigor. A breach of the trendline could result in a price drop of 0.65, although a weaker push against the dollar will result in a drop of about a penny. If the resistance line is broken, the pair could stall at a little more than 1.2231.
The technical forecast is a useful tool for traders. The currency pair is expected to see a rebound in the second half of the year. The mid-term is the midpoint between buy and sell prices. The European currency will rise to 1.125 in the second half of the year. In addition, the pair will reach the $1.125 level in the third quarter. The market will see a decline in the EUR from there.
The trendline supports the Euro in a volatile situation. The RSI indicator is indicating a strong downward trend. RSI is below 70. The weekly chart is a good indicator of risk in the currency. Further, the RSI is a sign of risk. A high RSI is a signal that the
price is approaching a plateau. The RSI supports the EUR in a strong way.
In the second quarter of 2021, the pair will continue to struggle against the USD. The euro is expected to lose some of its strength against the USD and is down against the dollar. The Taka will continue to rise and may reach 1.1412. If the price of the Euro drops further, it will fall further. This is the opposite of what the ECB has been trying to achieve. The ECB should take action. The market should not wait until the virus spreads to the rest of the world.
The currency pair’s performance is likely to remain weak against the Thai Baht. The currency pair’s value will likely remain near 1.1360. Further, the dollar is expected to remain strong against the dollar. The EURUSD will continue to weaken against the baht in the first quarter. Its performance has dropped significantly against the greenback. The ECB is trying to avoid a vaccine war.
The European Central Bank will wait until the Eurozone economy reaches a stable point before it decides whether or not to raise interest rates. The ECB has made clear that it is unlikely to raise interest rates until the second half of the year. This is because the central bank needs more time to gauge its own economic recovery. It is unlikely to act on its own if the economy starts to recover, unless it sees signs of an increasing interest rate.