#forexbreakfast focus forex (eng)
The year that has just ended was a year characterized by the generalized weakness of the dollar. On the last trading day, the Eur / Usd exchange rate reached 1.23 compared to 1.11 at the end of 2019. The euro strengthened against almost all currencies underpinned by the prompt reaction to the crisis by the EU and the ECB. Among the main currencies, one of the best was the Swedish krona, whose country was less affected by the effects of the pandemic, with GDP expected at -3.5% compared to -7.4% in the euro area. The Eur / Gbp exchange rate closed the year at 0.90, weighed down by the pandemic situation and the situation created by Brexit. Among the emerging currencies, the worst is the Argentine peso, the Brazilian real, and the Turkish lira. In these contexts, the already difficult past situations had weighed down by the pandemic. The ruble did not benefit from the brent rise, due to tensions in foreign policy and potential sanctions. The Yuan appreciated mainly thanks to the rapid economic recovery and the management of the virus.
Eur / Usd
The Eur / usd exchange rate at the end of 2020 reached above 1.23 and then dropped shortly before 2021. Now it looks like it’s going back to testing the level previously mentioned. Oscillators are overbought weekly, likely short term profit-taking. As long as the exchange rate remains above 1.2010 / 1.2066 the trend will remain upward. The possible targets are the resistances at 1.2414 and 1.2555.
Eur / Gbp
The exchange rate returned below 0.90 after the agreement on Brexit. The oscillators are neutral for now. To the downside, only a close below 0.8872 could lead to a bearish move. On the upside, resistance at 0.9162 remains to observe.
Eur / Turkish Lira
In the last week of 2020, the exchange rate continued its downward phase thanks above all to the higher-than-expected rate hike by the Central Bank. The 2020 uptrend is slowing down, The oscillators are diverging. A short technical rebound is likely. On the downside, there is support at 8.80. Its break could give further strength to the bearish movement. On the upside, 9.55 remains to observe.