EUR/USD: the pandemic impedes the growth of the pair 24 February 2021, 10:03

EUR/USD: the pandemic impedes the growth of the pair

24 February 2021, 10:03

Scenario
Timeframe	Weekly
Recommendation	BUY STOP
Entry Point	1.2179
Take Profit	1.2347
Stop Loss	1.2100
Key Levels	1.1846, 1.2070, 1.2179, 1.2347

Alternative scenario
Recommendation	SELL STOP
Entry Point	1.2070
Take Profit	1.1846
Stop Loss	1.2150
Key Levels	1.1846, 1.2070, 1.2179, 1.2347

Current trend

The EUR/USD pair corrects upward, trading around the level of 1.2146.

Despite yesterday’s positive macroeconomic statistics, the growth of EUR is constrained by the difficult situation with the spread of COVID-19 in the leading countries of the block. Last night, the Robert Koch Institute in Germany reported that the infection rate per 100K people began to rise again. Not long ago, this figure fell to 57 but now it has risen to 61, which is a very alarming signal: according to Angela Merkel, the lifting of restrictions would be possible only if the value is below 35.

USD declines, trading at mid-January levels. It is under pressure from pessimistic forecasts for the recovery of the national economy from the head of the US Federal Reserve, Jerome Powell. Yesterday, the official confirmed the data of the regulator's report and once again indicated that there could be no easing of the monetary policy since the economic recovery was very slow, and inflation and unemployment indicators were too far from the target level.

Support and resistance

Globally, the price completed the formation of the Head and shoulders reversal pattern and prepares for growth. Technical indicators keep an ambiguous sell signal. Fast EMAs on the Alligator indicator are close to signal one, and the AO oscillator histogram entered the buy zone.

Resistance levels: 1.2179, 1.2347.

Support levels: 1.2070, 1.1846.

Trading tips

After growth or consolidation above the local resistance at 1.2179, buy positions with the target in the area of ​​1.234 are relevant. Stop loss – 1.2100. Implementation period: 7 days or more.

After decline and reversal or consolidation below the local support of 1.2070, sell positions with the target at 1.1846 are relevant. Stop loss is 1.2150.