EUR/USD Daily Forecast – Euro Moves Lower As Germany’s Consumer Confidence Declines

EUR/USD Video 28.04.21.

Euro Is Under Pressure

EUR/USD is currently testing the support level at 1.2060 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get above the resistance at the 91 level and is moving towards the next resistance level which is located at 91.30. In case the U.S. Dollar Index gets to the test of this level, EUR/USD will find itself under more pressure.

Germany has recently released Consumer Confidence report for May. The report indicated that Consumer Confidence declined from -6.1 in April (revised from -6.2) to -8.8 in May. Analysts expected that Consumer Confidence would improve to -3.5. Consumer sentiment remains under pressure in Europe’s strongest economy which is a bearish catalyst for euro.

The main event of the day for foreign exchange market traders is the Fed Interest Rate Decision. Traders will pay close attention to Fed’s commentary. Treasury yields are moving higher ahead of Fed Interest Rate Decision, and the yield of 10-year Treasuries is trying to settle above 1.65%. If Treasury yields continue to move higher, EUR/USD will find itself under additional pressure.

Technical Analysis

EUR/USD continues its attempts to settle below the support level at 1.2060. If EUR/USD manages to settle below this level, it will move towards the next support at 1.2040.

In case EUR/USD declines below the support at 1.2040, it will head towards the next support level which is located at 1.2025. A move below this support level will open the way to the test of the support at the 20 EMA at 1.2000. If EUR/USD declines below the 20 EMA, it will get to the test of the major support level at 1.1990.

On the upside, the nearest resistance level for EUR/USD is located at 1.2090. If EUR/USD settles above 1.2090, it will head towards the resistance at 1.2115. A move above this level will open the way to the test of the next resistance level which is located at 1.2130.

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