The EURUSD pair closed higher on Monday, June 21 as panic selling in the euro and sterling stopped. Experts agreed that the 2023 rate hike forecasts of FOMC members may change several times. The single currency advanced 0.46% against the US dollar to 1.1916. The greenback reverted to a correction after a 3-day rally, while the DXY slipped 0.36% to 91.88.
The key pair rose to 1.1921. ECB President Christine Lagarde noted in her speech that the economic recovery is gaining momentum and that support for recovery processes must be provided. The spread of virus mutations poses a threat to the economy.
Meanwhile, the pound strengthened to 1.3937. The gains were driven by weakness in the dollar alongside traders’ expectations surrounding the outcome of the BoE meeting. Most likely, the regulator will signal another slowdown in asset purchases over the next few months.
Today’s macro agenda (GMT+3)
At the time of writing, EURUSD was fetching 1.1900. In Asian trading, the price action dropped to 1.1892. After winning back all of Friday's losses, the hourly TF shows a reversal pattern shaping up as the uptrend continues. Meanwhile, a bullish engulfing pattern is forming on the daily TF. It paves the way for the euro bulls to reach1.20.
Today’s highlights include Fed Chair Jerome Powell’s testimony before the House of Representatives on the central bank’s response to the pandemic. A subdued market reaction is expected.
Resistance is at the 67-degree angle (1.1928). As soon as the bulls take out this mark, the next target will be 1.1956 (2).