On Tuesday in Asia, the EUR / USD pair tested the 1.2070 mark due to the strength of the euro and the continuing decline in the dollar index.
Many experts attribute the strengthening of the European currency this week to reports that EU countries received an additional 100 million doses of COVID-19 vaccine from BioNTech SE and Pfizer Inc. Investors hope that this will help EU countries to speed up the process of vaccination of the population and to quickly remove restrictive measures.
The dollar index sank by 0.15% since the beginning of the day. Investors continue to play out the Fed's statements about the absence of plans to change monetary policy, even in the event of a short-term rise in inflationary pressures above the target.
At the beginning of the European trading session, the EUR / USD pair came under pressure amid a recovery in the dollar. The bears were able to win back some of the positions they had lost in Asia. The recovery of the dollar is taking place against the backdrop of rising yields of US Treasuries. The yield on 10-year securities today climbed to 1.602%.
There is again no important news in the economic calendar today, so the dynamics of the movement of the EUR / USD pair will again be determined by the situation on the debt securities market. In case of further recovery in the yield of American Treasuries, the dollar may win back a significant part of the previously lost positions.
After an unsuccessful attempt to gain a foothold above the level of 1.2060, today we can expect the development of a rollback movement in the direction of support at 1.2010.
The main scenario is a decline to 1.2010.
Alternative scenario - consolidation above 1.2060 and growth to 1.2100.
The current fundamental background is neutral. We consider shorts from the level of 1.2060.
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