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EUR/USD Daily Forecast – Resistance At The 20 EMA Stays Strong

By:
Vladimir Zernov
Published: Aug 16, 2021, 07:29 UTC

EUR/USD failed to settle above the 20 EMA and pulled back.

EUR/USD Daily Forecast – Resistance At The 20 EMA Stays Strong

In this article:

U.S. Dollar Tries To Gain Ground Against Euro

EUR/USD is currently moving towards the support level at 1.1775 while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index is testing the resistance at the 20 EMA which is located at 92.55. In case the U.S. Dollar Index manages to settle back above this level, it will move towards the resistance level at 92.80 which will be bearish for EUR/USD.

There are no material economic reports scheduled to be released in EU today so foreign exchange market traders will focus on NY Empire State Manufacturing Index report from U.S. which is projected to show that NY Empire State Manufacturing Index declined from 43 in July to 30 in August.

Traders will also keep an eye on the developments in U.S. government bond markets. The yield of 10-year Treasuries faced strong resistance at the 50 EMA near 1.36% and pulled back towards 1.25% as traders rushed to buy U.S. debt after a disappointing Consumer Sentiment report. It remains to be seen whether U.S. dollar will continue to move lower if Treasury yields drop as the American currency may get some support from safe-haven buying.

Technical Analysis

eur usd august 16 2021

EUR/USD made an attempt to settle above the resistance at the 20 EMA at 1.1795 but failed to develop sufficient upside momentum. The nearest support level for EUR/USD is located at 1.1775. In case EUR/USD manages to settle below this level, it will move towards the support at 1.1750.

A successful test of the support at 1.1750 will push EUR/USD towards the support at 1.1720. If EUR/USD declines below this level, it will move towards the support at 1.1690.

On the upside, EUR/USD needs to settle above the 20 EMA to have a chance to continue its rebound. A move above this level will open the way to the test of the resistance at 1.1830. In case EUR/USD manages to settle above the resistance at 1.1830, it will head towards the resistance which is located at the 50 EMA at 1.1850.

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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