After a time of toil and disappointment, EUR/USD has finally managed to gain some ground. The calm market is also helping the pair to soar higher. This pair is now regaining the trust and support of traders. Recently USD is moving upward at a slow pace. However this pace seems to increase its momentum in the near term. Different economic factors are currently hinting towards a stronger USD in the coming days. The boost up cycle of vaccination is one of those economic factors that are contributing in the strength of USD. Similarly the stimulus package is another factor in this regard.
Calm Market and USD:
Forex market is recently being hassle free and calm one but the scenario does not seem to last longer. Forex traders are keeping a close watch on the upcoming US economic figures. These figures are expected to be stronger than the previous ones. Thus the traders are currently anxiously waiting and eyeing the US economic events and announcements. These announcements are likely to give wings to the flight of USD. This expected rise in the worth of USD will ultimately lead to the gain for EUR/USD.
Trading chart and US Economy:
Today’s 4-hour trading chart indicates that the pair of EUR/USD is facing and dealing with strong resistance. The greater than expected yields on the bond program, particularly the bonds of 10-years seem to further support USD. The employment figures of ADP have shown noticeable increase of about 177000 jobs in the private sector. You can witness a prominent bounce in the figures of small scale businesses as well. The better than planned progress of vaccination program is also paving the way of rise of USD. The stronger dollar will weaken the euro. Thus the traders of euro do not feel too confident for the near term.