EUR/USD Daily Forecast – Support At 1.2070 Stays StrongEUR/USD failed to settle below the 20 EMA and is trying to settle above the resistance at 1.2090.
EUR/USD Video 13.05.21.
Euro Rebounds After Yesterday’s Sell-Off
EUR/USD found support near the 20 EMA at 1.2070 and is trying to rebound while the U.S. dollar is losing some ground against a broad basket of currencies.
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The U.S. Dollar Index is currently trying to settle below the nearest support level at 90.70. In case this attempt is successful, the U.S. Dollar Index will move towards the support at 90.50 which will be bullish for EUR/USD.
Yesterday, EU reported that Euro Area Industrial Production grew by 0.1% month-over-month in March compared to analyst consensus which called for growth of 0.7%. On a year-over-year basis, Industrial Production increased by 10.9%.
The report had little impact on currency dynamics as foreign exchange market traders focused on inflation data from the U.S. which indicated that inflation was rising faster than expected.
The U.S. inflation topic will dominate this week’s trading, although traders will also keep an eye on the latest U.S. Initial Jobless Claims report, which will be published today, and U.S. Retail Sales data for April which will be released on Friday.
EUR/USD is currently trying to settle above the resistance at 1.2090. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.
In case EUR/USD settles above 1.2090, it will move towards the resistance at 1.2115. A successful test of the resistance at 1.2115 will lead to the test of the next resistance level which is located at 1.2130.
If EUR/USD manages to settle above the resistance at 1.2130, it will continue its upside move and head towards the resistance level at 1.2155.
On the support side, the nearest support level for EUR/USD is located at the 20 EMA at 1.2070. This support level has been tested several times in recent trading sessions and proved its strength.
A move below the 20 EMA will lead to the test of the support at 1.2060. If EUR/USD declines below this level, it will head towards the support at 1.2040. A move below this level will open the way to the test of the support at 1.2025.
For a look at all of today’s economic events, check out our economic calendar.