The shooting star pattern has been formed on the 4-hour chart. This pattern represents a bearish reversal candlestick. Today, I expect the euro/dollar pair to decline from the levels of 1.1870-90. The mark of 1.1785 can be seen as a target where there is support. The next target level for the pair’s decline is 1.1703. The quotes are likely to test these levels by the end of this week or by next Tuesday.
The ECB is in no hurry to phase out the pandemic emergency purchase programme (PEPP) aimed at supporting the European economies, although the inflation rate is much higher than expected. Nevertheless, the ECB economists believe that there is no reason to panic. US Fed analysts note that it is too early to curtail the quantitative easing program, although the inflation rate has risen to 3%. According to the members of the Fed's board, they need more time to monitor the inflation growth, and only then they will be able to adopt a tough policy.
FX.co ★ Maxitraderzz | EUR/USD
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade