EUR/USD Daily Forecast – Resistance At 1.1900 Stays Strong

EUR/USD Video 10.03.21.

Euro Pulls Back Against U.S. Dollar

EUR/USD is currently trying to settle below the support at 1.1880 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index gained upside momentum after yesterday’s sell-off and is trying to settle above the resistance at 92.25. In case this attempt is successful, the U.S. Dollar Index will move towards 92.50 which will be bearish for EUR/USD.

Yesterday, EU provided the final reading of Euro Area Employment Change report for the fourth quarter of 2020 which indicated that employment grew by 0.3% quarter-over-quarter, in line with the analyst consensus.

The third estimate of Euro Area GDP Growth Rate indicated that GDP declined by 0.7% quarter-over-quarter compared to analyst consensus which called for a decline of 0.6%. On a year-over-year basis, GDP decreased by 5%.

Today, traders will have a chance to take a look at inflation data from the U.S. which may have a material impact on the foreign exchange market. Tomorrow, the focus will shift to ECB Interest Rate Decision and the subsequent commentary.

Technical Analysis

EUR/USD failed to settle above the resistance level at 1.1900 and is trying to settle back below the support at 1.1880. RSI has moved back into the moderate territory so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

If EUR/USD settles below the support at 1.1880, it will head towards the next support level at 1.1850. A successful test of this support level will open the way to the test of the next support which is located near the recent lows at 1.1830. In case EUR/USD declines below 1.1830, it will head towards the next support level at 1.1800.

On the upside, EUR/USD must stay above 1.1880 to have a chance to develop upside momentum in the near term. The next resistance level is located at 1.1900. This level has already been tested several times in recent trading sessions and proved its strength. If EUR/USD settles above 1.1900, it will head towards the resistance at 1.1925.

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