EUR/USD consolidation around 1.22000

The European Commission says deliveries of J&J vaccines will face a temporary decline but expect deliveries to increase again soon over the next month.

The European bloc reaffirms that based on information coming from pharmaceutical companies, they expect that the delivery of vaccines will be sufficient to reach 70% of the goal of vaccinating the adult population by summer. The Commission proposes that fully vaccinated persons who have vaccination certificates in accordance with the European digital certificate be exempted from travel-related testing or 14-day quarantine after receiving a second dose of vaccine. This is expected because the EU aims to reopen the summer across the region. Much like it was last summer. The stimulus to the major economies is too important to miss, so hopefully, this time, things will work better on the virus.

The money supply of the eurozone grew at a slower pace in April, and the growth of loans to the private sector slowed down, data published by the European Central Bank showed on Monday.

The M3 monetary aggregate rose 9.2 percent year-on-year in April but slower than the revised 10 percent increase recorded in March and the expected growth of 9.5 percent.

For the sixth consecutive week, speculators added gross longs in EUR and raised net longs to the highest level since the beginning of March. The bad image in the green currency, together with optimism about the recovery on the Old Continent and the firm introduction of vaccines, continued to support the inflow and confidence in the European currency.

Looking at the chart on the one-hour volume frame, we see a drop below the moving averages of the MA200 and EMA200, which can put additional pressure on the euro by making a new pullback. For now, we are consolidating around 1.21800-.122000, and it is currently unpredictable what the next direction of this pair is. A break above moving averages leads to s up in the zone around 1.22500, while otherwise, we can visit the previous low to 1.21300. The MACD indicator gives us the current bearish signal by descending below the signal line, which tells us that the Euro is under a certain pressure.