EUR/USD Daily Forecast – Resistance At 1.2200 Stays Strong

EUR/USD Video 08.06.21.

Euro Is Mostly Flat Against U.S. Dollar

EUR/USD is currently trying to get back below the 20 EMA at 1.2175 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index received support at the 90 level and is slowly moving towards the nearest resistance level which is located at the 20 EMA at 90.20. If the U.S. Dollar Index gets to 90.20, EUR/USD will find itself under more pressure.

Today, foreign exchange market traders will focus on the release of Euro Area ZEW Economic Sentiment Index. Analysts expect that ZEW Economic Sentiment Index increased from 84 in May to 84.9 in June. It should be noted that recent economic reports from EU did not look great so a negative surprise is possible.

Traders will also have a chance to take a look at the third estimate of the first-quarter Euro Area GDP Growth Rate report. Analysts expect that Euro Area GDP declined by 0.6% on a quarter-over-quarter basis. The final reading of the first-quarter Euro Area Employment Change report is expected to show that employment declined by 0.3% on a quarter-over-quarter basis.

Technical Analysis

EUR/USD did not manage to settle above the resistance at 1.2200 and moved closer to the support at the 20 EMA at 1.2175. In case EUR/USD declines below this level, it will head towards the next support at 1.2155.

A successful test of the support at 1.2155 will open the way to the test of the next support level at 1.2130. In case EUR/USD moves below this level, it will get to the test of the next support which is located at the 50 EMA at 1.2120.

On the upside, EUR/USD needs to settle above the resistance at 1.2200 to have a chance to gain upside momentum in the near term. If EUR/USD settles above 1.2200, it will move towards the next resistance level at 1.2220. A move above this level will push EUR/USD towards the next resistance at 1.2250.

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