The US currency is still struggling to take the lead in global markets this year, since it has to do its best to remain in the reached positions. Analysts believe that this trend will continue.
Experts say that the decline in risk appetite supported the dollar's recovery. At the same time, it is also supported by significant growth in the yields of long US government bonds. According to one version, political unrest in the United States can further support the US currency due to the worsening risk sentiment.
On the evening of January 11, the US dollar began to grow. Experts emphasize that the USD index increased to the maximum values recorded in December 2020. According to them, the weak data on the US labor market contributed to the short-term strengthening of protective assets, primarily the national currency.
On Tuesday morning, the EUR/USD pair is trading near the range of 1.2142-1.2143. Experts said that it is currently possible for the classic pair to consolidate below the current positions, believing that the next key resistance level is 1.2000. If this level is broken, it will open the way for the US dollar to further decline. At the same time, the real turning point for the EUR/USD pair may be the level of 1.1888. A pullback to it can change the current trend.
According to analysts, the US dollar's efforts to stay in its gained positions are not for nothing, although it is having a hard time to resist the decline. Nevertheless, experts expect the US currency to have a relative balance in the EUR/USD pair in the short and long term.
The material has been provided by InstaForex Company - www.instaforex.com