Forecast for EUR/USD on February 23, 2021

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Forecast for EUR/USD on February 23, 2021

Forecast for EUR/USD on February 23, 2021

EUR/USD

Yesterday, the euro received strong ideological support from the expected growth trends in US government bond yields. The yield on 5-year securities did not grow very high, but it overcame the psychological level of 0.60% and there were forecasts (rather expectations) of growth to 1.0%, 1.5% and even 2.0%. If this goes on, then the euro will have great prospects. The Federal Reserve should somehow intervene in the emerging situation, because with a government debt of 27.896 trillion. dollars, to which another 1.9 trillion will be added. according to the “Biden plan”, its maintenance will be difficult. We believe that the US central bank will take control of the yield curve earlier than the markets expect. It is possible that the media are already fulfilling a social order, raising a fuss on this issue.

Forecast for EUR/USD on February 23, 2021

Now the euro is facing the task of consolidating above the 1.2190 level. In this case, the subsequent correction from the 8th Fibonacci timeline will not be deep, approximately to the MACD indicator line (1.2100), afterwards the price may continue to rise to the upper target of 1.2272. The price is above the balance indicator line, while Marlin moves into the positive trend zone, the probability of growth is 80%.

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The price reversed from the support of the MACD line on the four-hour chart, it increases without signs of a reversal.

The material has been provided by InstaForex Company – www.instaforex.com

Source : https://www.fx.co/forex_analysis/quickview/271526/