EUR/USD Daily Forecast – Resistance At 1.2130 Stays Strong

EUR/USD Video 11.02.21.

Euro Is Mostly Flat Against U.S. Dollar

EUR/USD continues its attempts to settle above the resistance at 1.2130 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index is currently located near the support level at 90.30. The U.S. Dollar Index has already made several attempts to settle below this level but these attempts yielded no results. If the U.S. Dollar Index declines below the support at 90.30, it will have good chances to get to the test of the next support level at 90 which will be bullish for EUR/USD.

There are no important economic reports scheduled to be released in the EU today so foreign exchange market traders will focus on Initial Jobless Claims and Continuing Jobless Claims reports from the U.S. The market will also continue to follow the U.S. stimulus story. At this point, it looks like the upcoming stimulus package will be close to Biden’s original $1.9 trillion proposal which may provide additional support to riskier assets.

Technical Analysis

The technical picture for EUR/USD has not changed compared to the previous trading session as EUR/USD is still trying to settle above the nearest resistance level at 1.2130.

If EUR/USD manages to settle above this level, it will head towards the next resistance which is located at 1.2155. In case EUR/USD gets above 1.2155, it will move towards the resistance at 1.2175.

A move above the resistance at 1.2175 will signal that EUR/USD will try to develop additional upside momentum. In this scenario, EUR/USD will move towards the resistance level at 1.2220.

On the support side, the nearest support level is located at the 50 EMA near 1.2100. If EUR/USD settles below this level, it will get to the test of the next support level which is located at 1.2080. A successful test of the support at 1.2080 will open the way to the test of the next support level at 1.2060.

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