For Euro traders the week ahead will be dominated by the ECB meeting that ends Thursday but any hopes for clarity on when the Eurozone central bank will start tightening monetary policy will likely.
EUR/USD remains in an uptrend and is in a good position to reach the 1.23 level and then new highs for the year to date as the Eurozone economy improves and coronavirus cases drop.
EUR/USD Price Forecast: The Euro Bull vs The Euro Bear
Fundamental Euro Forecast: The Bull vs The Bear
In this article, DailyFX Analyst Martin Essex puts the case for EUR/USD strength.
EUR/USD Outlook: Strength Ahead, argues Martin Essex, DailyFX Analyst
On the face of it, the case for EUR/USD weakness is compelling. The US is way ahead of the EU in vaccinating its people against the Covid-19 virus, the US economy will therefore recover faster than the Eurozone’s and it will tighten monetary policy first: giving the US Dollar a boost against a struggling Euro.
Euro Forecast: EUR/USD Price Outlook Still Positive, 1.22 in Traders Sights
Fundamental Euro Forecast: Bullish
Clear signs that the global economy is recovering strongly could give a further boost to EUR/USD in the days ahead as more investors move out of safe-haven assets such as the US Dollar and into “risk-on” assets including the Euro.
The first target for the bulls is the 1.22 round number and then the February 25 high at 1.2243.
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Euro price outlook: further gains
Clear signs are emerging that the global economy is now expanding rapidly after the sharp contraction caused by the coronavirus pandemic, and that should mean more losses for the safe-haven US Dollar and more gains for the currencies traders turn to when sentiment improves – the Euro included.
Euro Forecast: EUR/USD Outlook Still Constructive After Break Above 1.20
Fundamental Euro Forecast: Neutral
Near-term, EUR/USD will likely pause for breath after breaching the 1.20 level last week for the first time since March 4.
After that, however, further strength is possible, with the February 25 high at 1.2243 still a sensible longer-term target.
In the meantime, the end of the coming week is packed with Eurozone economic data that could provide further evidence that the next move will be upwards, or change the outlook to a more negative one.
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Euro price well placed for further gains
The outlook for EUR/USD remains rosy after last week’s break above 1.20 for the first time since early last month but there could be a delay of a few days or more as the bulls realize their gains before reinstating long positions.