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EUR/USD Daily Forecast – Euro Needs More Catalysts To Move Higher

By:
Vladimir Zernov
Updated: May 11, 2021, 07:42 UTC

EUR/USD settled below the support at 1.2155 and is testing the next support level at 1.2130.

EUR/USD Daily Forecast – Euro Needs More Catalysts To Move Higher

In this article:

EUR/USD Video 11.05.21.

Euro Pulls Back Against U.S. Dollar

EUR/USD is currently trying to settle below the support at 1.2130 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index rebounded from the support at the 90 level and is testing the resistance at 90.30. In case this test is successful, the U.S. Dollar Index will head towards the resistance at 90.50 which will be bearish for EUR/USD.

Today, foreign exchange market traders will focus on the economic data from the EU. Analysts expect that Euro Area ZEW Economic Sentiment Index declined from 66.3 in April to 65 in May. In Germany, Europe’s leading economy, Economic Sentiment Index is projected to increase from 70.7 to 72.

It remains to be seen whether strong data from Germany (in case Economic Sentiment Index meets expectations) will provide additional support to euro which gained a lot of ground against U.S. dollar since early April and may need more catalysts to continue its upside move.

Technical Analysis

eur usd may 11 2021

EUR/USD declined below the support at 1.2155 and is trying to settle below the next support level which is located at 1.2130. RSI is in the moderate territory, and there is plenty of room to gain downside momentum in case the right catalysts emerge.

If EUR/USD settles below the support at 1.2130, it will move towards the next support level at 1.2115. A successful test of this level will open the way to the test of the support at 1.2090. In case EUR/USD declines below the support at 1.2090, it will head towards the support which is located at the 20 EMA at 1.2065.

On the upside, the previous support at 1.2155 will serve as the first resistance level for EUR/USD. If EUR/USD manages to settle above this level, it will head towards the resistance which is located at the recent highs at 1.2175. This resistance level has already been tested several times and proved its strength. In case EUR/USD gets above this level, it will move towards the next resistance at 1.2220.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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