EUR Trader Update

May 18th, 2021

There has been a lot of talk surrounding the future of US Inflation and Interest rates, We think that it’s far too early to make a definitive call. So the Federal Reserve narrative that high inflation is a short term transition will keep US Yields and the dollar on the defensive, for now.

Meanwhile in the Euro Zone, Bond Yields have been rising, with expectations that Europe will be playing catch up, and reopening its economies soon. The EUR will also benefit from the sentiment that global growth is surging in Q2 2021.

EURUSD

The EUR will find support at 1.2110/20 today as it trades slightly below lasts week 1.2180 high.

With negative USD sentiment it is probable that an attempt will be made to break this high, if broken we will see a run up to 1.2220 and possibly 1.2250 in extension.

Should 1.2180 hold firm, it is the EUR will drift back to support sub 1.2100 and even take another look at our key 1.2060 level.

EURJPY

EURJPY continues its bullish attempt to break 132.90/133.00 and if broken it will target 133.40.

Support is now found at 132.40, while this area holds there will be more attempts to crack 133.00. However, a break of 132.40 would likely allow a drop to 131.80 or possibly 131.30.

EURGBP

EURGBP bears will be happy as GBPUSD has broken 1.4160 and is making a new highs today. This GBP advance they hope, will give the market the momentum to push the cross lower towards 0.8560 and 0.8540.

Failure to break support will see the EUR grind back higher to resistance in the 0.8610/30 zone and more consolidation.

Analysis from Point and Figure Charts provided by http://www.eightdragonscapital.com

For more information on trading Forex and Gold contact support@8dragonscapital.com

Published by Neil Callard

Forex Trader and Educator. 30 years trading experience, of which 20 years was market making in major currencies in large international financial institutions.

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