EUR/USD Daily Forecast – Euro Tries To Move Higher Against U.S. Dollar

EUR/USD Video 26.03.21.

Euro Attempts To Rebound

EUR/USD is trying to rebound after the recent sell-off while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index is currently trying to settle below the nearest support level which is located at 92.70. If this attempt is successful, the U.S. Dollar Index will move towards the next support at 92.50 which will be bullish for EUR/USD.

Today, foreign exchange market traders will focus on Business Confidence data from Germany. Analysts expect that Business Confidence improved from 92.4 in February to 93.2 in March.

This report may have a material impact on EUR/USD trading dynamics as Germany is the leading European economy. If Germany’s Business Confidence does not improve, euro may find itself under more pressure.

Several European countries announced additional virus-related restrictions in recent days as Europe is facing the third wave of the virus. Worries about the negative impact of new restrictions have put material pressure on the euro in recent trading sessions. In case the upcoming economic data shows that business sentiment is getting worse in Europe, euro will likely move lower.

Technical Analysis

EUR/USD failed to settle below the support at 1.1750 and is trying to get to the test of the nearest material resistance level which is located at 1.1800. In case EUR/USD manages to get above the resistance at 1.1800, it will gain additional upside momentum and head towards the next resistance at 1.1830.

RSI is close to the oversold territory, so there is plenty of room to gain upside momentum in case the right catalysts emerge. If EUR/USD settles above the resistance at 1.1830, it will move towards the next resistance at 1.1850.

On the support side, EUR/USD needs to get below the support at 1.1750 to continue its downside move. The next support level for EUR/USD is located at 1.1720. If EUR/USD declines below this level, it will head towards the support at 1.1690.

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