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

EUR/USD Video 29.03.21.

Resistance At 1.1800 Stays Strong

EUR/USD did not manage to settle above the resistance at 1.1800 and pulled back while the U.S. dollar moved higher against a broad basket of currencies.

The U.S. Dollar Index is currently located in the range between the support at 92.70 and the resistance at 93. RSI remains in the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

No important economic reports will be released in the U.S. and EU today so foreign exchange market traders will likely focus on coronavirus updates from Europe.

The Europe is facing the third wave of the virus, and markets are worried that additional virus-related restrictions will put more pressure on the European economy. These worries have put material pressure on the euro in recent trading sessions.

Meanwhile, the U.S. economy is projected to record strong growth in 2021 due to the new round of economic stimulus. The difference in the speed of the economic rebound between Europe and U.S. may continue to serve as a bearish catalyst for EUR/USD.

Technical Analysis

EUR/USD failed to settle above the resistance at 1.1800 but did not develop strong downside momentum. The nearest significant support level for EUR/USD is located at 1.1750, but it looks like EUR/USD also gets some support near 1.1775.

If EUR/USD manages to settle below 1.1775, it will head towards the support at 1.1750. A successful test of the support at 1.1750 will open the way to the test of the next support level which is located at 1.1720. A move below the support at 1.1720 will push EUR/USD towards the support at 1.1690.

On the upside, a move above the resistance at 1.1800 will open the way to the test of the resistance at 1.1830. In case EUR/USD gets above this level, it will head towards the next resistance at 1.1850. If EUR/USD manages to settle above the resistance at 1.1850, it will move towards the resistance at 1.1880.

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