EUR/USD Daily Forecast – Euro Attempts To Gain More Ground Against U.S. Dollar

EUR/USD Video 17.05.21.

Resistance At 1.2155 In Sight

EUR/USD is currently trying to settle above the resistance at 1.2130 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to gain additional upside momentum above the resistance at 90.30 but this attempt yielded no results, and the U.S. Dollar Index moved back to 90.30. If the U.S. Dollar Index settles below this level, it will head towards the support at the 90 level which will be bullish for EUR/USD.

EU will not release any notable economic reports today so foreign exchange market traders will wait for the release of NY Empire State Manufacturing Index from the U.S. which is projected to decline from 26.3 in April to 23.9 in May.

Traders will also continue to monitor the general market sentiment towards U.S. dollar. Inflation fears have recently provided some support to the American currency but Fed officials managed to calm markets, and the dollar moved closer to multi-week lows. However, inflation remains a significant threat, so markets will remain very sensitive to inflation reports.

Technical Analysis

EUR/USD managed to get above the resistance at 1.2130 and is trying to develop additional upside momentum. The next resistance level for EUR/USD is located at 1.2155.

In case EUR/USD manages to settle above the resistance at 1.2155, it will move towards the next resistance level at 1.2175. This resistance level has already been tested several times in May and proved its strength. A move above the resistance at 1.2175 will push EUR/USD towards the resistance at 1.2220.

On the support side, a move below 1.2130 will open the way to the test of the next support at 1.2115. If EUR/USD settles below the support at 1.2115, it will head towards the next support level which is located at the 20 EMA at 1.2090.  A successful test of the support at the 20 EMA at 1.2090 will push EUR/USD towards the support at 1.2060.

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