EURUSD extends its gains, reaching its highest level in seven weeks

Mohammed Abdelkhalik
April 19, 2021

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EURUSD Technical Analysis – 20th April 2021

EURUSD achieved a rise in the morning of Monday’s trading in the European market, it jumped above the level of $ 1.2 for the first time in seven weeks.

These broad gains come with an improvement in trading brokers ’risk appetite and their appetite for buying high-risk currencies.

In light of the continuous decline of US Treasury bond yields, especially after the Federal Reserve Bank’s assurances that it would continue its expansionary policy for a period until the full recovery of the US economy, which was affected by the repercussions of the spread of the Coronavirus.

EURUSD Monthly Chart - 19th April 2021

The EURUSD pair opened today’s session at $ 1.1972, to rise by 0.5%, and is currently trading at $ 1.2032, the highest in seven weeks.

EURUSD continues rasing

EURUSD closed trading on Friday, achieving 0.15% gains for the fourth consecutive day in the last five days, thanks to the weakness of the US dollar, in addition to the continued decline in US Treasury yields for ten years.

The US dollar is trading near its lowest level in a month

The US dollar fell against a basket of major currencies to trade near its lowest level in four weeks, with US Treasury yields continuing to decline to near their lowest level in five weeks, with the Fed’s assurances not to raise interest rates until a full recovery For the US economy, the bank also reiterated that high inflation, for the time being, is likely to be temporary.

The dollar index traded at 91.623 points, near the lowest level in a month at 91.48 points that it recorded last week.

The yields of the US 10-year Treasury bonds fell to 1.5280% last week, after rising at the end of last March to their highest levels in more than a year at 1.7760%.

The Governor of the Reserve Bank, “Christopher Waller”, confirmed last Friday that the current rise in inflation rates is likely to be temporary.

Added that the US economy is on the path of recovery in light of the continued intensification of vaccination operations and the recovery of economic activities that were stopped due to the Coronavirus pandemic.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.