EUR/USD Daily Forecast – Resistance At 1.2175 Stays Strong

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Published: Feb 24, 2021, 07:58 UTC

EUR/USD did not manage to settle above the resistance at 1.2175 and pulled back towards 1.2155.

Euro Is Mostly Flat Against U.S. Dollar

EUR/USD is trying currently to settle back above the resistance at 1.2155 while the U.S. dollar is under pressure against a broad basket of currencies.

The U.S. Dollar Index is testing the nearest support at the 90 level. If this test is successful, the U.S. Dollar Index will gain downside momentum and head towards the next support level at 89.75 which will be bullish for EUR/USD.

Yesterday, EU reported that Inflation Rate increased by 0.9% year-over-year in January while Core Inflation Rate grew by 1.4%. Both reports were in line with the analyst consensus and did not have a major impact on the dynamics of the euro.

Today, foreign exchange market traders will have a chance to take a look at the final estimate of Germany’s GDP Growth Rate in the fourth quarter of 2020. Analysts expect that Germany’s GDP managed to grow by 0.1% on a quarter-over-quarter basis. Big revisions rarely occur in the final numbers, but any negative surprise will likely put pressure on the euro as the market remains worried about the speed of the economic recovery in the EU.

Technical Analysis

EUR/USD has recently made an attempt to settle above the resistance level at 1.2175 but failed to develop sufficient upside momentum and pulled back. Currently, EUR/USD is trying to settle back above the resistance at 1.2155. If this attempt is successful, EUR/USD will get to another test of the resistance at 1.2175.

In case EUR/USD gets above 1.2175, it will move towards the next resistance level at 1.2220. There are no important levels between 1.2175 and 1.2220 so this move may be fast. A successful test of the resistance at 1.2220 will open the way to the test of the next resistance level at 1.2250.

On the support side, a move below 1.2155 will push EUR/USD towards the support at 1.2130. In case EUR/USD declines below this level, it will head towards the 20 EMA at 1.2115. The 50 EMA is located at 1.2110 so EUR/USD will likely receive material support in the 1.2110 – 1.2115 area.

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

About the Author

Vladimir Zernovauthor

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.