EUR/USD Bounce Back!

Relevance up to 09:00 2021-06-22 UTC--5

EUR/USD has rebounded as the DXY has finally slipped lower after its aggressive rally. Still, the US Dollar Index's decline could be only a temporary one. It could come back to test and retest the immediate support levels before jumping higher.

The Eurozone and the US manufacturing and services data could shake the markets on Wednesday. Some better than expected US economic figures could send the DXY higher again and EUR/USD down.

EUR/USD Rebound!

EUR/USD has increased and now is challenging the 61.8% retracement level. This represents an important static resistance. Only stabilizing above this obstacle could signal further growth.

The pressure remains high despite this rebound. This bounce back could bring us a new short opportunity.

Outlook!

It's risky to buy EUR/USD right now as the price could drop again soon. So, you'll have to wait for the rebound to end before going short. It could find strong resistance at the 1.1985 level.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Ralph Shedler,
Analytical expert
InstaForex Group © 2007-2021

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