EUR/USD Daily Forecast – Euro Is Flat Against U.S. Dollar

EUR/USD Video 12.02.21.

Resistance At 1.2130 Remains A True Wall On The Way Up For EUR/USD

EUR/USD continues to trade near the resistance level at 1.2130 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index is currently testing the resistance level at 90.50. A move above this level will push the U.S. Dollar Index towards the next resistance at the 20 EMA at 90.65 which will be bearish for EUR/USD.

Yesterday, U.S. reported that Initial Jobless Claims declined from 812,000 to 793,000 while Continuing Jobless Claims decreased from 4.69 million to 4.55 million.

The situation in the job market continues to stabilize, but the number of Americans filing for unemployment benefits remains high. Foreign exchange market traders continue to wait for the upcoming stimulus package which should be close to Biden’s original $1.9 trillion proposal, and it remains to be seen whether the new round of money-printing will put additional pressure on the American currency.

Today, traders will focus on the U.S. Consumer Confidence report for February. Analysts expect that Consumer Confidence increased from 79 in January to 80.8 in February.

Technical Analysis

EUR/USD continues its attempts to settle above the nearest resistance level at 1.2130. This resistance level has already been tested many times in recent trading sessions and proved its strength.

In case EUR/USD manages to settle above 1.2130, it will gain upside momentum and get to the test of the next resistance level at 1.2155. A move above 1.2155 will push EUR/USD towards the resistance at 1.2175.

This level may also serve as a major resistance level for EUR/USD as it has proved its strength back in late January. If EUR/USD moves above the resistance at 1.2175, it will head towards the resistance at 1.2220.

On the support side, the nearest support for EUR/USD is still located at the 50 EMA at 1.2105. If EUR/USD gets below this level, it will head towards the support at 1.2080. A move below 1.2080 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.