EUR/USD Daily Forecast – Euro Starts The Week On A Strong Note

Euro Moves Higher Against U.S. Dollar

EUR/USD continues its attempts to settle above the resistance level at 1.1330 while U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index is currently trading in a range between the support at the 96 level and the resistance at 96.25. The support at 96 has already been tested many times and proved its strength. In case the U.S. Dollar Index manages to settle below this level, it will gain downside momentum and move towards the next support at 95.75 which will be bullish for EUR/USD.

There are no important economic reports scheduled to be released in the U.S. and EU, so foreign exchange market traders will remain focused on COVID-19 data and general market sentiment.

Global markets continue to evaluate the potential impact of the Omicron spread, and it looks that traders believe that the worst scenarios would not materialize. However, the safe-haven U.S. dollar continues to get support as traders expect that Fed will be forced to raise rates at a robust pace due to high inflation in the U.S.

Technical Analysis

EUR/USD is currently trying to settle above the resistance level at 1.1330. In case this attempt is successful, EUR/USD will move towards the next resistance level which is located at 1.1350.

A move above the resistance at 1.1350 will open the way to the test of the resistance which is located at the 50 EMA at 1.1370. If EUR/USD moves above the 50 EMA at 1.1370, it will head towards the resistance at 1.1400.

On the support side, the nearest support level for EUR/USD is located at the 20 EMA at 1.1310. A move below the 50 EMA will push EUR/USD towards the support at 1.1300.

If EUR/USD declines below the support at 1.1300, it will head towards the next support at 1.1270. A successful test of the support at 1.1270 will push EUR/USD towards the next support level which is located at 1.1230.

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