EUR/USD Daily Forecast – Euro Tries To Gain Ground Ahead Of The Weekend

EUR/USD Video 19.03.21.

U.S. Dollar Is Moving Lower As Treasury Yields Pull Back From Recent Highs

EUR/USD is currently trying to settle back above 1.1925 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index has recently returned back to the previous trading range between the support at 91.75 and the resistance at 92. Currently, the U.S. Dollar Index is trying to settle below the support at 91.75. In case this attempt is successful, the U.S. Dollar Index will head towards the next support level at 91.50 which will be bullish for EUR/USD.

Yesterday, U.S. reported that Initial Jobless Claims increased from 725,000 to 770,000 compared to analyst consensus of 700,000. The report served as a reminder that there was a long way to the full recovery of the job market.

However, it had little impact on the foreign exchange market as traders were focused on rising Treasury yields. Today, Treasury yields lost momentum and pulled back from recent highs which was bearish for the U.S. dollar. The yield of 10-year Treasuries is currently trying to settle below 1.69% after testing the 1.75% level during yesterday’s trading session.

Technical Analysis

EUR/USD received support at 1.1900 and is trying to settle above the resistance at 1.1925. In case this attempt is successful, EUR/USD will head towards the next resistance level which is located near the 20 EMA at 1.1965.

A move above the 20 EMA will open the way to the test of the next resistance level at 1.2000. In case EUR/USD manages to get above the resistance at 1.2000, it will head towards the next resistance level at the 50 EMA at 1.2030.

On the support side, the nearest support level for EUR/USD is located at 1.1900. This support level has been recently tested and proved its strength. If EUR/USD declines below the support at 1.1900, it will head towards the next support level at 1.1880. A move below 1.1880 will push EUR/USD towards the next support at 1.1850.

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