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EUR/USD Daily Forecast – Resistance At 1.2250 In Sight

By:
Vladimir Zernov
Updated: May 19, 2021, 07:59 UTC

EUR/USD settled above the resistance at 1.2220 and is moving towards the next resistance level at 1.2250.

EUR/USD

In this article:

EUR/USD Video 19.05.21.

Euro Gains Some Ground Against U.S. Dollar

EUR/USD managed to get above the resistance at 1.2220 and is moving towards the next resistance at 1.2250 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index is currently testing the support level at 89.75. If the U.S. Dollar Index manages to settle below this level, it will move towards the support at 89.50 which will be bullish for EUR/USD.

Today, foreign exchange market traders will have a chance to take a look at inflation data from the EU. Analysts expect that Euro Area Inflation Rate increased by 0.6% month-over-month in April. On a year-over-year basis, Euro Area Inflation Rate is projected to increase by 1.6%. Core Inflation Rate is projected to grow by 0.8% year-over-year.

Traders will also continue to monitor the developments in U.S. government bond markets. Treasury yields have started to move higher in recent trading sessions, and the yield of 10-year Treasuries is currently trying to settle above 1.66%. It should be noted that higher yields failed to provide any support to the U.S. dollar in recent days, but the situation may change quickly if yields begin to rise faster.

Technical Analysis

eur usd may 19 2021

EUR/USD is currently trying to get to the test of the resistance at 1.2250. RSI is still in the moderate territory despite the recent upside move, and there is plenty of room to gain additional upside momentum.

In case EUR/USD manages to settle above 1.2250, it will head towards the next resistance at 1.2280.  A successful test of the resistance at 1.2280 will open the way to the test of the resistance at 1.2310. If EUR/USD settles above this level, it will head towards the next resistance at 1.2350.

On the support side, the previous resistance at 1.2220 will serve as the first support level for EUR/USD. If EUR/USD declines below this level, it will head towards the support at 1.2175. A move below 1.2175 will push EUR/USD towards the support at 1.2155.

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

About the Author

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.

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