EUR/USD: financial statements strengthened the dollar 18 February 2021, 10:43

EUR/USD: financial statements strengthened the dollar

18 February 2021, 10:43

Scenario
Timeframe	Weekly
Recommendation	BUY STOP
Entry Point	1.2100
Take Profit	1.2270
Stop Loss	1.2000
Key Levels	1.1825, 1.1958, 1.2100, 1.2270

Alternative scenario
Recommendation	SELL STOP
Entry Point	1.1958
Take Profit	1.1825
Stop Loss	1.2000
Key Levels	1.1825, 1.1958, 1.2100, 1.2270

Current trend

The EUR/USD pair is correcting downwards, trading around the level of 1.2043.

Today, EUR started the trading session with a decline. The main factor that continues to affect the instrument is the situation with the spread of COVID-19. Quarantine measures taken by several states are significantly hampering economic recovery. During yesterday's press conference, the head of the European Commission, Ursula von der Leyen, said that vaccination is progressing at a sufficient pace but it is necessary to increase its speed in the near future. So far, about 33 million doses have been delivered, most of which are vaccines from Pfizer. The entire purchase contract is 1.1 billion doses, and after vaccines from other companies are approved, supply volumes will reach 2.3 billion doses.

USD significantly strengthened its positions after the publication of macroeconomic data and FOMC minutes. The benchmark retail sales index for January rose to 5.9% from –1.8% in December. The PPI rose 1.3% from 0.3% in the previous period. Retail sales for January rose by 5.3%, significantly better than the –1.0% decline for December.

Support and resistance

Globally, the price started a downward correction, which can act as the second shoulder of the Head and shoulders pattern. Technical indicators keep a sell signal. Fast EMAs on the Alligator indicator are below the signal one, and the AO oscillator histogram trades in the sell zone.

Resistance levels: 1.2100, 1.2270.

Support levels: 1.1958, 1.1825.

Trading tips

After reversal and growth or consolidation above the local resistance around 1.2100, buy positions with the target around ​​1.2270 are relevant. Stop loss – 1.2000. Implementation period: 7 days or more.

After decline or consolidates below the local minimum of 1.1958, sell positions with the target at 1.1825 are relevant. Stop loss – 1.2000.