Forex. Euro/Dollar (EUR/USD) trading forecast and signal for today, April 20
EUR continues to rise in value against the US Dollar. On Monday, the quotes reached new 7-week highs near the resistance level of 1.2030.
The move came solely against the backdrop of growing dollar weakness after the opening of trading in the Euro zone, and US and German bond yields maintained a steady downward trend. The good news for the EU is that the vaccination campaign has stepped up again, and the problems seem to have been fixed. Demand from consumers in the US has a ripple effect and can also stimulate the economies of European countries. In the near future, the demand for risk will continue, and this is a positive factor for EUR/USD currency pair.
In the short term, investors are likely to remain cautious ahead of the European Central Bank ECB meeting on Thursday. At the same time, FOMC members entered the usual period of silence before the Fed meeting on April 28. This time, both Central Bank meetings are unlikely to bring serious news on the monetary policy of the Euro zone and the United States. Regulators have identified certain limits to the growth of inflation, after the exit from which a quick intervention will be required. The current results show that the growth in consumer prices is generally in line with the expectations of Central Banks, so there is no need to wait for changes.
EUR/USD Trading Signal
The forecast expects further growth of euro/dollar to 1.2100.