EUR/USD Hot Forecast for 8 March, 2021
EUR/USD has dipped below 1.19, hitting a new 2021 low. Yields of US ten-year Treasuries have resumed their gains toward 1.60% after robust US nonfarm payrolls and the Fed’s reluctance to intervene. German industrial output disappointed with -2.5% in January.
From a technical point, the pair closed below 1.1945 on Friday, marking a downside break of the 23.6% Fibonacci retracement of the rally from 1.0636 to 1.2349. EUR/USD is diving further below the 1.1900 psychological level, approaching the lower surface of the upward sloping channel.
A successful fall beneath the ascending channel could take the price towards the 1.1745 support ahead of the 38.2% Fibonacci retracement level . Beneath these lines, the 1.1610 support and the 50.0% Fibonacci of 1.1490 could come next.
On the other hand, if the bulls take the upper hand again and rebound off the lower band of the channel or at 100% fibonacci extension at 1.1850 .The price could make a pullback towards the 1.1940-1.1960 significant support resistance region coincides with the 23.6% Fibonacci. Moreover, this supports the bias as the stochastic is hovering in the oversold territory.
The material has been provided by InstaForex Company – www.instaforex.com