EUR/USD Forex Signal Today 21/04: Bullish Pattern (Chart)

(MENAFN- Daily Forex) Bullish view

• Buy the EUR/USD pair and set a take-profit at 1.1450.
• Add a stop-loss at 1.1250.
• Timeline: 1-2 days.

Bearish view

• Sell the EUR/USD pair and set a take-profit at 1.1250.
• Add a stop-loss at 1.1450.

The EUR/USD exchange rate continued to soar this month and is hovering at its highest level since February 2022. It has risen in the last four consecutive weeks, and is about 12% above its lowest point this year threats to fire Jerome Powell

The EUR/USD pair has been in a strong bull run as the US dollar index continued its sell-off. After soaring to a high of $110 earlier this month, the index fell to $99.2, its lowest level since 2022.

The dollar has plummeted due to Donald Trump's trade war, prompting many economists to predict that the US will slip into a recession this year. Polymarket estimates place odds of a recession this year at 65%.

The greenback has also plunged as Donald Trump piled pressure on the Federal Reserve to cut interest rates. According to Kevin Hassett, the head of the Economic Council of advisors, he is studying whether he can fire the Fed Chair, a move that would lower investor confidence.

On the positive side, legal experts agree that the president can only fire the Fed Chair for cause, a term widely understood to mean misconduct or illegal actions.

The EUR/USD pair has jumped as European assets have emerged as safe-havens during this trade war. Indeed, European benchmarks such as the German DAX and French CAC 40 have outperformed their American counterparts, including the Nasdaq 100 and S&P 500 indices.

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The pair also rose after the European Central Bank slashed interest rates again last week. Officials hinted that they may cut rates again later this year as it deals with Donald Trump's trade war. On the positive side, Trump hinted that he was optimistic of reaching a trade deal with Europe later this year.

EURUSD Chart by TradingViewEUR/USD technical analysis

The EUR/USD exchange rate continued its strong rally, reaching its highest point in years. It has moved above the key resistance point at 1.1207, the upper side of the cup and handle pattern shown in green. This cup has a depth of 9.3%, meaning that it will eventually rise to 1.2240. This target is derived by measuring the same distance from the cup's upper side.

The EUR/USD pair remains above the 50-day and 100-day moving averages, while oscillators have continued rising. Therefore, the pair will likely keep soaring as bulls target the key psychological point at 1.1400. The alternative scenario is where it drops and retests the upper side of the cup at 1.1207.

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