FX.co ★ EUR/USD analysis for March 15 2021 - Consolidation phase with potential for the downside breakout and test of 1.1870

Impact of lockdown is less than it was a year ago

• We now have a more balanced picture of risks
• Economy expected to return to pre-pandemic size around the end of the year
• Build-up of savings is an upside risk
• I would expect pickup in inflation towards 2% in the next few months
• We do not see inflation rising towards 4% or 5%
• We are not out of tools for policy options
• We could introduce new monetary policy tools
• We are asking banks to get ready for negative rates
• But there is no view on whether we will use them or not
• Rise in rates in the market is consistent with change in economic outlook

Further Development

Analyzing the current trading chart of EUR/USD, I found that there is the consolidation phase in last 6 hours and you should watch for the breakout to confirm further direction.

Key Levels:

Resistance: 1,1942

Support level: 1,1910 and 1,1870