EUR/USD Daily Forecast – Euro Continues To Pull Back
EUR/USD Video 30.04.21.
U.S. Dollar Gains Some Ground Against Euro
EUR/USD is currently trying to settle below the support at 1.2115 while the U.S. dollar is gaining some ground against a broad basket of currencies.
The U.S. Dollar Index is testing the resistance level at 90.70. If this test is successful, the U.S. Dollar Index will move towards the resistance at 91 which will be bearish for EUR/USD.
Yesterday, EU reported that Euro Area Consumer Confidence improved from -10.8 in March to -8.1 in April, in line with the analyst consensus. Industrial Sentiment increased from 2.1 (revised from 2) to 10.7 compared to analyst consensus of 4 while Services Sentiment increased from -9.6 (revised from -9.3) to 2.1 compared to analyst consensus of -8.7. The rapid improvement of Services Sentiment was a positive surprise for the market, but it did not provide additional support to euro.
Today, foreign exchange market traders will have a chance to take a look at additional economic reports from the EU. First-quarter Euro Area GDP Growth Rate report is projected to show that Euro Area GDP declined by 0.8% on a quarter-over-quarter basis. Analysts expect that Euro Area Unemployment Rate remained unchanged at 8.3% in March.
EUR/USD is currently testing the support at 1.2115. In case this test is successful, EUR/USD will head towards the next support at 1.2090. A move below this level will open the way to the test of the support at 1.2060.
If EUR/USD declines below the support at 1.2060, it will head towards the next support level at 1.2040. A successful test of this level will push EUR/USD towards the 20 EMA at 1.2025.
On the upside, EUR/USD needs to get back above 1.2115 to have a chance to develop upside momentum in the near term. The next resistance level is located at 1.2130.
If EUR/USD gets above this level, it will move towards the resistance at 1.2155. A move above this level will open the way to the test of the next resistance at 1.2175.
For a look at all of today’s economic events, check out our economic calendar.