EUR/USD has pulled back after ending the previous session at a one-week high. Yesterday’s gains came after the Fed’s dovish tone. The central bank has indicated that it intends to maintain interest rates as they are, at least till 2023. The subsequent sell-off of the greenback pushed the EURUSD higher.
However, Fed’s bullish outlook on the country’s economic recovery, coupled with the vaccination concerns in Europe, have curbed the currency pair’s gains. Investors are now looking for cues from the ECB President’s speech.
Furthermore, the pair will be reacting to the initial jobless claims data later in the day. Since mid-February, the released figures have beat analysts’ expectations. In today’s release, experts expect the jobless claims to be at 700,000; a decline from the previous month’s 712,000.
The EURUSD is currently trading above the 20 and 50-day exponential moving averages after trading below the two indicators for the better part of the week. Besides, it has broken out of the bullish flag that has been in formation from early last week. Based on these technical indicators, EUR/USD is likely to continue rallying. In today’s session, the pair has been trading around the resistance level of $1.1991. if it manages to move past that level, the bulls will be targeting the 2-month high of $1.2244. On the lower side, the targets to look out for are $1.1925, $1.1900, and $1.1837.
