EUR USD STRUGGLES TO EXCEED 1.2140 RESISTANCE
The parity, which spent the whole week with a limited depreciation, gained momentum due to dollar assets, while attacks towards 1.2140 gained speed. While the tensions on the dollar increased after the annual inflation figure in the US came slightly below expectations, on the other hand, Fed Chairman Jerome Powell's statement that the US economy is far from a strong employment also triggered the weakness on dollar assets. Even if there is a slight upward acceleration compared to last week with weekly unemployment pension applications in the USA, it continues to maintain its image below the 800 thousand threshold. The US indices, which had a rising momentum due to increasing incentive expectations throughout the week, experienced a slight loss of momentum towards the end of the week.
Regarding the developments in the Euro Area, the European Union Commission shared its expectation that the Euro Area growth will increase by 3.8 percent and inflation by 1.4 percent in 2021. While the quarantine period in Germany was extended to 7 March, German Chancellor Merkel underlined that preparations should be made regarding the mutated virus, but the measures will not take longer than necessary. Protected Covid-19 concerns regarding the Euro Area continue to trigger tension on Euro assets. However, in the general scenario, the parity, which turned its direction due to weak dollar, partially recovered on the last trading day of the week, causing a slight easing movement.
In the light of all this information, as we see the closing above 1.2140 resistance in the EURUSD parity, which has spent the week with an upward trend, the rises may enter into acceleration by the periphery of the 1.2175 and 1.2220 resistance level. However, with the 1.2140 threshold being at a strong resistance position, we are gradually following the 1.2090 initial support in the short-term dissolves in the pair, and below this level, the 1.2052 and 1.20 support levels are gradually.