FX.co ★ EUR/USD analysis for March 08 2021 -Sellers in control and potential for test of our next target at 1.1800

Prior -0.2

Euro area investor morale jumps to its highest level in over a year as sentiment improves amid vaccine optimism and a hopefully better economic outlook later in the year.

The headline reading is the highest since February last year. Sentix notes that:

"Global vaccination campaigns are making good progress, raising hopes of effective protection. Those trends allow for a faster reopening of the economy. That is what investors are betting on."

Adding that investors are also anticipating rising inflation pressures, which will be driven by expansive monetary and fiscal policy as well as pent-up demand.

Further Development

Analyzing the current trading chart of EUR/USD, I found that tthe EUR is heading towards our second downside target at 1,1800.

My advice is still to watch for selling opportunities on the rallies with the downside targets at the price of 1,1800 (consolidation mean) and 1,1620 (Daily lows).

Key Levels:

Resistance: 1,1957

Support levels:1,1800 and 1,1620