GOLDWELL：Daily Market Recap – EURUSD Continues Its Consolidation after ECB Announcement

The European Central Bank is keeping its main economic support package to fight the pandemic running at full speed, even as the economy shows signs of recovery thanks to fewer cases of the virus and fewer restrictions on activity in the 19 countries that use the euro currency.

Ms. Lagarde said there are “some divergent views” on the pace at which to continue buying bonds, adding that it is still “too early” to discuss when the emergency program should end.

The Fed, led by Chairman Jerome Powell, has repeatedly expressed its belief that inflation will be temporary as supply bottlenecks are unblocked and coins and goods flow normally again. But some economists fear that as the economic recovery gathers momentum, fuelled by increased demand from consumers who are once again spending freely, inflation will also accelerate.

The euro against the dollar remains in a horizontal consolidation between 1.2100 and 1.22244. A break of this last market low would expose it to a return to 1.1990.

However, the European currency remains in a positive momentum above the 34-period moving average and the 200-period moving average. It now needs to break through the last high at 1.2267 to get back on track for the 2021 high at 1.2350.

Disclaimer: This material has been created for information purposes only. All views expressed in this document are my own and do not necessarily represent the opinions of any entity.