EUR/USD Daily Forecast – Euro Tries To Rebound After Yesterday’s Sell-Off

EUR/USD Video 09.03.21.

Euro Attempts To Gain Ground Against U.S. Dollar

EUR/USD found support at 1.1830 and is trying to rebound above the resistance at 1.1850 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle above the resistance at 92.50 but failed to develop sufficient upside momentum and rebounded closer to the support at 92.25. In case the U.S. Dollar Index manages to settle below the support at 92.25, it will head towards the 92 level which will be bullish for EUR/USD.

Yesterday, Germany reported that Industrial Production declined by 2.5% month-over-month in January compared to analyst consensus which called for growth of 0.2%. This disappointing report put significant pressure on the euro.

Today, foreign exchange market traders will focus on the economic data from the EU. The final reading of the fourth-quarter Euro Area Employment Change report is expected to show that employment increased by 0.3% on a quarter-over-quarter basis.

The third estimate of the fourth-quarter Euro Area GDP Growth Rate report is projected to indicate that Euro Area GDP declined by 0.6% on a quarter-over-quarter basis.

The euro is sensitive to negative economic data so it may find itself under additional pressure if the reports are weaker than expected.

Technical Analysis

EUR/USD is trying to settle above the resistance at 1.1850. In case this attempt is successful, it will head towards the next resistance level which is located at 1.1880.

A move above the resistance at 1.1880 will open the way to the test of the resistance at 1.1900. If EUR/USD settles above 1.1900, it will head towards the next resistance level at 1.1925.

On the support side, the nearest support level for EUR/USD is located at 1.1830. If EUR/USD declines below this level, it will head towards the next support at 1.1800. A move below the support at 1.1800 will push EUR/USD towards the support at 1.1750, although it may also get some support near 1.1780.

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