EUR/USD heads for 4th gain in a row
- Euro holds firm to gains versus US Dollar, recovers key level.
- US Dollar remains weak amid risk appetite and Trump’s tariffs.
EUR/USD is consolidating important gains, headed toward the fourth daily gain in a row. A weaker US dollar pushed the pair to the upside on Tuesday, extending the rebound that started last week from 1.2150 (1-month low).
The euro peaked during the American session at 1.2419, the highest level since February 19. Then pulled back and during the last hours, it has been moving in a range between 1.2385 and 1.2410.
From Thursday’s low, EUR/USD has risen almost 300 pips making a strong reversal. It rose back above the 20-day moving average and holds a bullish tone. It is back near a key long-term dynamic resistance: a downtrend line from 2008 highs that stands at 1.2480/1.2500.
While the US dollar remains weak following the announcement from President Trump of tariffs the euro gained ground amid risk appetite following headlines from Korea.
What ahead for EUR/USD?
The main event of the week for the euro will the ECB meeting on Thursday. No change in monetary policy (rates and QE) is expected but most analysts see as likely a change in the forward guidance with a removal of the easing bias.
In the US, the key economic report will be the February jobs report on Friday. Eyes are likely to be on average hourly earnings, rather than NFP. Today’s data showed that Factory Orders declined 1.4% in January, in line with expectations, “largely confirming the cooling trend hinted in last week's durable goods report”, according to analysts from Wells Fargo.