EUR/USD resistance at 1.22500

We are now in a far better position than in recent months, Eurogroup President and Irish Finance Minister Paschal Donohoe said on Friday, commenting on the eurozone’s economic outlook, adding that the eurozone’s economic outlook is improving, expecting 70% of the population to be vaccinated by the end of July and that the Eurozone will receive financial assistance in the second half of the year to continue its recovery from the coronavirus. A German health official says studies suggest that existing vaccines are less effective against the Indian variant of COVID-19.

This will be a risk to look out for as large economies begin to thrive by reopening before summer. Fear of the Indian variant of COVID-19 has already been growing in the UK in the last few days, and if the numbers start to grow rapidly, it could pose a greater risk to the overall outlook in the second half of 2021.

The euro is expected to advance against the US dollar. Joe Biden will improve relations with the EU, which will provide a boost to the euro. Under this scenario, investors will lose interest in the U.S. dollar as a safe-haven asset, shifting their focus to currencies in emerging markets due to the declining risks of trade wars between Washington and Brussels.

Looking at the graph on the four-hour time frame, we can do the following technical analysis. We see that the EUR/USD pair has encountered resistance at 1.22500, but we have the support of moving averages from below for now. If consolidation is delayed, we will probably see some pullback because the euro does not have enough wind in its back to push it towards 1.23000. The MA50 seems to be better support for the EUR/USD pair around 1.215000-1.217500. The dollar is approaching this year’s low, and there is a possibility that it will find support there again, which could lead to the EURUSD falling closer to 1.20000 psychological level. The MACD indicator shows us the euro’s current weakness and that we can see the bearish signal.