EUR/USD Daily Forecast – Euro Moves Lower Ahead Of The Weekend
EUR/USD Video 09.04.21.
Euro Pulls Back
EUR/USD is currently trying to settle below the support at 1.1900 while the U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index managed to get above the resistance at 92.15 and is trying to get above the next resistance level which is located at the 20 EMA at 92.35. In case this attempt is successful, the U.S. Dollar Index will head towards the next resistance at 92.50 which will be bearish for EUR/USD.
Today, Germany reported that Industrial Production declined by 1.6% month-over-month in February compared to analyst consensus which called for growth of 1.5%. The recent economic reports were strong, so the weakness of Germany’s Industrial Production is a surprise for foreign exchange market traders.
Meanwhile, Treasury yields are moving higher after yesterday’s downside move which serves as a bullish catalyst for the U.S. dollar. If Treasury yields continue to gain ground, EUR/USD will find itself under more pressure.
EUR/USD failed to settle above the resistance level at the 50 EMA at 1.1920 and declined below the support at 1.1900. Currently, EUR/USD is trying to get to the test of the next support level which is located at 1.1880.
If EUR/USD manages to settle below the support at 1.1880, it will continue its pullback and move towards the next support at the 20 EMA at 1.1850. A successful test of the support at the 20 EMA will open the way to the test of the next support at 1.1830. If EUR/USD gets below this level, it will head towards the support at 1.1800.
On the upside, EUR/USD needs to get back above 1.1900 to have a chance to develop upside momentum in the near term. The next resistance level for EUR/USD is located at the 50 EMA at 1.1920. A move above the 50 EMA will signal that EUR/USD is ready to continue its rebound. In this case, EUR/USD will head towards the next resistance which is located at 1.1965.
For a look at all of today’s economic events, check out our economic calendar.