EUR/USD Bearish Engulfing to Drive Sell – Brace for a Sell Signal!
The EUR/USD pair was closed at 1.1984 after placing a high of 1.1990 and a low of 1.1916. EUR/USD pair posted gains for the third consecutiv
The Pandemic Emergency Purchase Program (PEPP) was unchanged at a total of 1.85 trillion euros that will expire on March 2022. The bond yields in Europe also rose following the rise in the US treasury yields after the US President announced a massive fiscal stimulus plan. More aid to the economy has led to fears that rising yields could derail the economic recovery in Europe by raising borrowing costs for countries that already struggle with the coronavirus crisis. The ECB, however, ensured that the bank’s commitment to more purchases would support the bond prices, and as a result, the borrowing costs will remain lower as bond yields move inversely to the prices. Despite the dovish stance of ECB, the EUR/USD pair continued posting gains on Thursday.
On the data front, from the US side, at 12:00 GMT, the Federal Budget balance showed a deficit of -310.9B against the forecasted-298.6B and supported the US dollar, capping further gains in EUR/USD. At 18:30 GMT, the Unemployment Claims from the last week fell to 712K against the projected 730K and supported the US dollar, and capped further upside momentum in the pair. At 20:00 GMT, the JOLTS Job Openings surged to 6.92M against the estimated 6.65M and supported the US dollar, and limited the upward movement.
The rising hopes for a return to a coronavirus-free economy also raised the optimism in the market that resulted in more risk flows and less demand for safe-havens like the US dollar. The US dollar weakness added to the upward momentum of the EUR/USD pair on Thursday.

Support Resistance
1.1936 1.2010
1.1888 1.2038
1.1861 1.2085
Pivot Point: 1.1963
The EUR/USD pair is trading with a bearish bias at 1.1946 level, exhibiting bullish correction, and it’s now likely to head towards a 38.2% Fibonacci retracement level of 1.1902. The pair is staying below the 1.1987 level, and it’s likely to find support at the 1.1900 level. Violation of 1.1900 level can trigger selling trend until 1.1859 mark. Conversely, bullish trend continuation of 1.1901 level can lead EUR/USD towards 1.1902 and 1.1838 level. Good luck!
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