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

EUR/USD Video 07.05.21.

Test Of Resistance At 1.2090

EUR/USD is currently trying to settle above the resistance at 1.2090 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index has settled below the support at the 91 level and is trying to get to the test of the next support level which is located at 90.70. In case the U.S. Dollar Index manages to get to 90.70, EUR/USD will get more support.

Yesterday, EU reported that Retail Sales increased by 2.7% month-over-month in March compared to analyst consensus which called for growth of 1.5%. On a year-over-year basis, Retail Sales grew by 12% compared to analyst consensus of 9.6%. Retail Sales were weak in March of 2020 due to the negative impact of the pandemic which explains the strong growth on a year-over-year basis.

Today, foreign exchange market traders will wait for the employment reports from the U.S. Recent ADP Employment Change and Initial Jobless Claims reports highlighted the recovery of the U.S. job market, and today traders will have a chance to take a look at Non Farm Payrolls and Unemployment Rate reports for April.

Technical Analysis

EUR/USD managed to get above the resistance at 1.2060 and is trying to settle above the next resistance level at 1.2090. In case this attempt is successful, EUR/USD will head towards the resistance at 1.2115.

A move above the resistance at 1.2115 will push EUR/USD towards the resistance at 1.2130. In case EUR/USD gets above this level, it will head towards the next resistance level which is located near April highs at 1.2155.

On the support side, the previous resistance at 1.2060 will serve as the first support level for EUR/USD. If EUR/USD manages to get back below 1.2060, it will move towards the support at 1.2040.

A successful test of the support at 1.2040 will push EUR/USD towards the next support level at the 20 EMA at 1.2030. If EUR/USD declines below the 20 EMA, it will move towards the 50 EMA at 1.1995.

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