17.02.202113:37 Forex Analysis & Reviews: Analysis and forecast for EUR/USD on February 17, 2021

Yesterday, the main currency pair of the Forex market was trading quite volatile. Despite the positive macroeconomic statistics that came from the eurozone yesterday, this did not help the single European currency to strengthen against the US dollar. Although there were certainly such attempts, and this is visible on the daily chart of the EUR/USD pair.

Daily

As you can see, having risen to 1.2169, the euro bulls weakened their pressure and failed to continue the rate rise. From the indicated mark, the pair turned in the south direction and ended trading on February 16 at the level of 1.2105. Although the closing price of yesterday's trading was slightly above the important level of 1.2100, the long upper shadow of the last candle made it clear that the players on the rise of the rate are not able to continue to fulfill their mission. Today, at the time of writing, the pair continues to show a downward trend and is trading around 1.2075. I note that this is not only below the already designated level of 1.2100, but also the support that passes at 1.2080. I believe that the closing price of today's trading will largely determine the prospects for the price movement of the euro/dollar. However, a strong technical zone of 1.2060-1.2050, where the red line of the Ichimoku Tenkan indicator passes, as well as a significant technical level of 1.2050, can save the pair from a downward trading scenario. Bullish sentiment will return to the market only in the event of a breakdown of the strong resistance of sellers in the price zone of 1.2170-1.2200.

H4

On the four-hour timeframe, we see that the moving averages of 200 EMA, 89 EMA, and 50 MA could not hold the price and it fell under the used moving averages. Now all three of these moving averages can provide strong resistance to the quote in the event of another attempt to grow. Given this probability, you can try to sell the pair on attempts to rise above the moving averages, that is, from the price zone of 1.2095-1.2110. If a bullish pattern or Japanese candlestick pattern appears near the level of 1.2050, this will be a signal for purchases of the single European currency. But still, given yesterday's daily candle, its long upper shadow, and the inability to overcome the strong resistance of sellers in the area of 1.2170, the downward scenario for EUR/USD has a better chance of its implementation.

Concluding today's review of the main currency pair, it is impossible to ignore the fundamental component. In the absence of macroeconomic statistics from the eurozone, the main events of today will be reports from the United States of America. Starting at 14:30 London time, data on producer prices, retail sales, industrial production, as well as the NAHB housing market index will begin to arrive from the United States. However, the main event of today will be the publication of the minutes of the FOMC meeting of the US Federal Reserve, which is scheduled for 20:00 London time. Although recently the macroeconomic background is perceived by market participants far from unambiguously, today may be an exception, and all of the above events will affect the results of trading in the euro/dollar on February 17.