EUR/USD Daily Forecast – Another Test Of Support At 1.1900

EUR/USD Video 17.03.21.

Euro Is Mostly Flat Against U.S. Dollar

EUR/USD is currently trying to settle below the support at 1.1900 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index is still stuck in the range between the support at 91.75 and the resistance at 92. In case the U.S. Dollar Index declines below the support at 91.75, EUR/USD will get additional support.

Yesterday, EU reported that Euro Area ZEW Economic Sentiment Index increased from 69.6 in February to 74 in March compared to analyst consensus of 74.5. The report was mostly in line with analyst estimates, and it did not have a material impact on EUR/USD dynamics.

Today, foreign exchange market traders will have a chance to take a look at the final reading of inflation reports for February. Euro Area Inflation Rate is projected to grow by 0.9% year-over-year while Euro Area Core Inflation Rate is expected to increase by 1.1%.

No surprises are expected, and the reports will likely have minimal impact on EUR/USD as traders will be focused on the Fed Interest Rate Decision and the subsequent commentary.

Technical Analysis

EUR/USD managed to settle below the support at 1.1925 and is trying to settle below the next support level which is located at 1.1900.

In case this attempt is successful, EUR/USD will move towards the support at 1.1880. This support level has been tested during yesterday’s trading session, and EUR/USD received material support just above 1.1880.

If EUR/USD declines below 1.1880, it will head towards the next support level at 1.1850. A move below the support at 1.1850 will push EUR/USD towards the next support at 1.1830.

On the upside, the previous support at 1.1925 will serve as the first resistance level for EUR/USD. If EUR/USD manages to settle above this level, it will head towards the next resistance at 1.1965. In case EUR/USD gets above the resistance at 1.1965, it will get to the test of the next resistance level which is located at the 20 EMA at 1.1975.

For a look at all of today’s economic events, check out our economic calendar.