The dollar has the potential to strengthen further in the short term, including against the euro. The breakout of the support levels 1.1600 and 1.1550 will increase the risks of a resumption of the long-term bearish trend in EUR/USD. The negative dynamics of the pair prevails.
On Wednesday at 18:00 (GMT) the minutes of the March FRS meeting will be published. Most likely, the minutes will confirm that most of the Fed leaders expect a short-term acceleration of inflation.
And if they send any hints or signals regarding the possibility of curtailing the stimulus program, then the dollar may receive another strong support against the backdrop of rising yields on US government bonds (the yield on 10-year US bonds has stabilized around 1.700%, just below the local multi-month high of 1.776%), rapid rates of vaccination in the United States (US president Biden promised that 200 million Americans would be vaccinated by Apr. 30) and thanks to the outstripping growth of the US economy, especially relative to the European economy.
- Support levels: 1.1788, 1.1780, 1.1600, 1.1550, 1.1285
- Resistance levels: 1.1830, 1.1900, 1.1990, 1.2055, 1.2070, 1.2100, 1.2180, 1.2270, 1.2340, 1.2555, 1.2580, 1.2600
Trading Recommendations
EUR / USD:
Sell Stop 1.1785. Stop-Loss 1.1835. Take-Profit 1.1780, 1.1700, 1.1600, 1.1550, 1.1285
Buy Stop 1.1835. Stop-Loss 1.1785. Take-Profit 1.1900, 1.1990, 1.2055, 1.2070, 1.2100, 1.2180, 1.2270, 1.2340, 1.2555, 1.2580, 1.2600