EUR/USD Daily Forecast – Euro Tries To Continue Yesterday’s Rebound

EUR/USD Video 23.03.21.

Euro Is Mostly Flat Against U.S. Dollar

EUR/USD is currently trying to settle above the resistance at 1.1925 while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index remains in the range between the support at 91.75 and the resistance at 92. The U.S. Dollar Index has made several attempts to get out of this range but failed to develop sufficient momentum. If the U.S. Dollar Index manages to settle below the support at 91.75,  it will head towards the next support at the 20 EMA at 91.50 which will be bullish for EUR/USD.

Today, foreign exchange market traders will have a chance to take a look at New Home Sales data from the U.S. Analysts expect that New Home Sales declined by 6.5% month-over-month in February after growing by 4.3% in January.

Yesterday’s Existing Home Sales report, which indicated that Existing Home Sales decreased by 6.6% month-over-month in February, missed analyst estimates which called for a decline of 3%. At this point, the potential decline of housing market activity in the U.S. did not have any major impact on the foreign exchange market.

Technical Analysis

EUR/USD continues to test the resistance level at 1.1925. If EUR/USD manages to settle above this level, it will head towards the next resistance level which is located at the 20 EMA at 1.1955.

A move above the 20 EMA will open the way to the test of the next resistance which is located just below the psychologically important 1.2000 level at 1.1990. This resistance level has already stopped several attempts to move higher in March. In case EUR/USD gets above 1.1990, it will head towards the 50 EMA at 1.2015.

On the support side, a move below 1.1925 will push EUR/USD towards the support at 1.1900. If EUR/USD settles below this level, it will head towards the next support at 1.1880 which has been tested during yesterday’s trading session. A move below 1.1880 will open the way to the test of the support at 1.1850.

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