EUR/USD Daily Forecast – Euro Is Flat After Yesterday’s Upside Move

EUR/USD Video 29.04.21.

Euro Tries To Gain More Ground Against U.S. Dollar

EUR/USD has recently made an attempt to settle above the resistance at 1.2130 but failed to develop sufficient upside momentum and pulled back while the U.S. dollar was flat against a broad basket of currencies.

The U.S. Dollar Index declined below the support at 90.70 but did not manage to settle below the support at 90.50 and remains in the range between 90.50 and 90.70. In case the U.S. Dollar Index settles below the low end of this range, it will move towards 90.30 which will be bullish for EUR/USD.

Yesterday, the U.S. dollar found itself under pressure after the Fed left the interest rate unchanged and reiterated its dovish message.

Today, foreign exchange market traders will focus on the economic data from the EU. Analysts expect that Euro Area Industrial Sentiment increased from 2 in March to 4 in April. Euro Area Services Sentiment is projected to improve from -9.3 to -8.7 but remain in the negative territory as virus containment measures continue to put pressure on the services segment.

Technical Analysis

EUR/USD did not manage to settle above the resistance at 1.2130 and pulled back closer to the support at 1.2115. In case EUR/USD settles below this support level, it will head towards the next support at 1.2090.

A successful test of the support at 1.2090 will open the way to the test of the next support level at 1.2060. If EUR/USD declines below this level, it will move towards the support level which is located at 1.2040.

On the upside, EUR/USD needs to settle above the resistance at 1.2130 to continue its upside move. The next resistance level for EUR/USD is located at 1.2155.

In case EUR/USD manages to settle above this level, it will move towards the next resistance at 1.2175. A move above the resistance at 1.2175 will open the way to the test of the resistance at 1.2220. There are no important levels between 1.2175 and 1.2220 so this move may be fast.

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