The US currency is determined with the choice of direction at the beginning of this week, trying to leave a dominant position. However, experts note the inconsistency of the USD dynamics, which seeks to consider a bullish scenario.
On the morning of April 19, the EUR/USD pair was seen trading within the range of 1.1959-1.1960, but it headed further up. At the beginning of the day, the instrument was dominated by bearish sentiment. The bears' immediate target is to break through the support level of 1.1950. However, they had to retreat, as the bullish trend strengthened in the currency market. At the start of trading on Monday, the bulls took control, moving to the psychologically important level of 1.1985. At the same time, the EUR/USD pair was trading around the level of 1.1980, making an attempt to consolidate in the current positions.
Earlier, experts recorded bullish sentiments for the Euro currency in the EUR/USD pair. Many market participants increased their positions on the euro's growth after their one-and-a-half-month decline. According to experts, the continuation of this trend will lead to an increase in the EUR/USD pair.
As for the US currency, experts' opinions are quite contradictory. Some hold a negative position on the USD, while their opponents expect it to increase in the medium term. JPMorgan bank experts believe that the dollar's weakening will end anytime soon. They believe that the downward movement of this currency is a temporary phenomenon, which is a correction against the trend. It should be noted that the US economy and the exceptional position of the US in the world provides significant support to the US dollar. The bank thinks that these factors help the national currency to cope with the negative consequences of the COVID-19 pandemic.
Currently, JPMorgan experts maintain a long position on the USD against the EUR, as well as against the currencies of developed countries. These include the Swiss franc, European, British and Japanese currencies. At the beginning of this week, uncertainty prevails in the markets, which confuses investors, although stock markets are trading at a high.
Many analysts pay attention to the priority of the dollar over other global currencies. The traditional role of the USD is reduced to the status of a reliable safe-haven currency, but the current divergence of its dynamics makes it difficult to choose the direction of movement. According to experts, the dollar has currently no worthy competitors. The main contender for the global financial throne remains the euro, but it is under pressure from the economic problems of the EU countries. Therefore, experts conclude that there is no suitable alternative to the US dollar right now.
Despite the current difficulties, the US currency is still at the peak of demand, while maintaining the status of a protective asset. At present, this currency is trying to adequately survive a period of decline, after which it can sharply grow. Experts highlighted that the US dollar remains the main protective instrument in times of market instability and crisis, when its supply is declining and its demand is growing.