Vladimir Zernov
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EUR/USD Video 23.04.21.

Another Test Of Resistance At 1.2040

EUR/USD continues its attempts to settle above the resistance at 1.2040 while the U.S. dollar is losing ground against a broad basket of currencies.

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The U.S. Dollar Index is currently trying to get to the test of the support level at 91. If the U.S. Dollar Index declines below this level, it will move towards the support at 90.70 which will be bullish for EUR/USD.

Yesterday, European Central Bank left the interest rate unchanged and kept the key components of its current policy intact. ECB did not deliver any surprises, and its monetary policy decisions had little impact on EUR/USD.

On Thursday, EU provided flash reading of Euro Area Consumer Confidence report for April. The report indicated that Consumer Confidence improved from -10.8 in March to -8.1 in April.

Today, foreign exchange market traders will have a chance to take a look at flash PMI reports from the Euro Area. Analysts expect that Euro Area Manufacturing PMI declined from 62.5 in March to 62 in April while Euro Area Services PMI decreased from 49.6 to 49.1. Numbers below 50 show contraction.


Technical Analysis

EUR/USD managed to settle above the resistance at 1.2025 and is trying to gain upside momentum above the resistance at 1.2040. In case this attempt is successful, EUR/USD will get to the test of the next resistance level which is located at 1.2060. Yesterday, EUR/USD made an attempt to settle above this level but this attempt yielded no results.

In case EUR/USD moves above the resistance at 1.2060, it will head towards the resistance at 1.2090. A move above this level will open the way to the test of the resistance at 1.2115.

On the support side, the previous resistance at 1.2025 will serve as the first support level for EUR/USD. A move below this level will push EUR/USD towards the support at 1.1990. A successful test of the support at 1.1990 will open the way to the test of the support at the 20 EMA at 1.1960.

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

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