EUR/USD Daily Forecast – Test Of Resistance At 1.1880

EUR/USD Video 07.04.21.

Euro Tries To Continue Its Rebound

EUR/USD is currently trying to settle above the resistance at 1.1880 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index continues to test the support at the 20 EMA at 92.35. If the U.S. Dollar Index manages to settle below this level, it will head towards the next support at 92.15 which will be bullish for EUR/USD.

Yesterday, EU reported that Euro Area Unemployment Rate was 8.3% in February compared to analyst consensus of 8.1%. Today, foreign exchange market traders will focus on the final reading of Euro Area Services PMI report for March. Analysts expect that Services PMI increased from 45.7 in February to 48.8 in March. Numbers below 50 show contraction. The European services segment remains under pressure due to the third wave of the virus, and it remains to be seen when it will be able to return to growth.

Technical Analysis

EUR/USD managed to settle above the resistance at 1.1850 and is trying to settle above the next resistance level at 1.1880. While the recent rebound was strong, RSI remains 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 the resistance at 1.1880, it will head towards the next resistance level at 1.1900. A successful test of this level will open the way to the resistance which is located at the 50 EMA at 1.1925.

If EUR/USD gets above the 50 EMA, it will head towards the resistance at 1.1965. A move above this level will push EUR/USD towards the resistance which is located at 1.1990.

On the support side, the previous resistance level at 1.1850 will serve as the first support level for EUR/USD. If EUR/USD gets below this level, it will get to the test of the next support at the 20 EMA at 1.1840. In case EUR/USD declines below 1.1840, it will head towrds the support at 1.1800.

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