EUR/USD Daily Forecast – Support At 1.1965 Stays Strong

EUR/USD Video 19.04.21.

Euro Is Mostly Flat Against U.S. Dollar At The Beginning Of The Week

EUR/USD has recently made an attempt to settle below the support at 1.1965 but failed to develop sufficient downside momentum while the U.S. dollar remained under pressure against a broad basket of currencies.

The U.S. Dollar Index is currently testing the nearest support level which is located at 91.50. In case the U.S. Dollar Index settles below this level, it will move towards the next support at 91.30 which will be bullish for EUR/USD.

On Friday, EU reported that Euro Area Inflation Rate increased by 1.3% year-over-year while Euro Area Core Inflation Rate grew by 0.9%. Both reports were in line with the analyst consensus. There are no signs of pricing pressure in the Euro Area as the European economy remains under pressure from the third wave of the virus.

Today, foreign exchange market traders will have a chance to take a look at Euro Area Construction Output report for February. Analysts forecast that  Construction Output declined by 3.6% year-over-year.

Technical Analysis

EUR/USD failed to settle below the nearest support level at 1.1965 and is moving towards the resistance at 1.1990. This resistance level has already been tested several times in recent trading sessions and proved its strength.

In case EUR/USD manages to get above the resistance at 1.1990, it will gain additional upside momentum and head towards the resistance at 1.2025. A succcessful test of the resistance at 1.2025 will open the way to the test of the next resistance level at 1.2040. If EUR/USD settles above this level, it will head towards the resistance at 1.2060.

On the support side, a move below the support at 1.1965 will push EUR/USD towards the support at the 50 EMA at 1.1935. In case EUR/USD declines below the support at the 50 EMA, it will move towards the 20 EMA which is located at 1.1915. A successful test of the support at the 20 EMA will push EUR/USD towards the next support at 1.1900.

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