EUR/USD Daily Forecast – Euro Pulls Back After Yesterday’s Upside Move

EUR/USD Video 06.04.21.

U.S. Dollar Gains Some Ground Against Euro

EUR/USD is currently trying to settle below 1.1800 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index failed to settle below the support at 92.50 and rebounded closer to the nearest resistance level at 92.70. In case the U.S. Dollar Index manages to settle back above this level, it will gain upside momentum and head towards the next resistance at the 93 level which will be bearish for EUR/USD.

Today, foreign exchange market traders will have a chance to take a look at Euro Area Unemployment Rate report for February. Analysts expect that Unemployment Rate remained unchanged at 8.1% as the pandemic continued to put pressure on the European economy.

Traders will also keep an eye on the latest developments in U.S. government bond market. Treasury yields have pulled back from recent highs, but it remains to be seen whether this pullback will be sustainable as the U.S. economic rebound is strong and inflation risks are increasing. If Treasury yields get back to the upside mode, the U.S. dollar will get more support which will be bearish for EUR/USD.

Technical Analysis

EUR/USD did not manage to get to the test of the resistance at the 20 EMA at 1.1830 and pulled back towards the support at 1.1800. In case EUR/USD declines below this support level, it will head towards the next support at 1.1775.

A successful test of the support at 1.1775 will open the way to the test of the support at 1.1750. In case EUR/USD settles below the support at 1.1750, it will move towards the next support which is located near the recent lows at 1.1720.

On the upside, EUR/USD must get above the 20 EMA at 1.1830 to continue its upside move. The next resistance level for EUR/USD is located at 1.1850. If EUR/USD gets above this level, it will head towards the resistance at 1.1880. A successful test of this level will push EUR/USD towards the resistance at 1.1900.

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