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15.03.2021 02:24 PM
EUR/USD analysis for March 15 2021 - Consolidation phase with potential for the downside breakout and test of 1.1870
BOE's Bailey: We will need to see evidence that the trend in inflation is sustainable

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

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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

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