EUR/USD Daily Forecast – Euro Is Flat Against U.S. Dollar At The Start Of The Week

EUR/USD Video 31.05.21.

EUR/USD Stays Close To 1.2200

EUR/USD is currently trying to settle above 1.2200 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index is located near the support level at 90. A move below this level will push the U.S. Dollar Index towards the support at 89.75 which will be bullish for EUR/USD.

On Friday, EU reported that Euro Area Consumer Confidence increased  from -8.1 in April to -5.1 in May, in line with the analyst consensus.

Euro Area Industrial Sentiment improved from 10.9 in April (revised from 10.7) to 11.5 in May, while Euro Area Services Sentiment increased from 2.2 (revised from 2.1) to 11.3.

Today, foreign exchange market traders will have a chance to take a look at inflation data from Germany. Analysts expect that Inflation Rate increased by 0.3% month-over-month in May. On a year-over-year basis, Inflation Rate is projected to grow by 2.3%.

While inflation worries have decreased in recent weeks, traders will keep an eye on inflation data as any signs of rising inflation may have a material impact on currency dynamics.

Technical Analysis

EUR/USD is currently trying to get above the 1.2200 level. In case this attempt is successful, EUR/USD will move towards the next resistance at 1.2220.

In case EUR/USD settles above the resistance at 1.2220, it will move towards the next resistance level at 1.2250. If EUR/USD manages to settle above this level, it will head towards the resistance at 1.2280. A successful test of this level will open the way to the test of the resistance at 1.2310.

On the support side, the nearest support level for EUR/USD is located at 1.2175. If EUR/USD declines below this level, it will move towards the next support at the 20 EMA at 1.2165, and it looks that EUR/USD will get strong support in the 1.2165 – 1.2175 area.

A successful test of the support at the 20 EMA will push EUR/USD towards the support at 1.2130. If EUR/USD moves below 1.2130, it will head towards the support at 1.2115.

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