EUR/USD Daily Forecast – Test Of Resistance At 1.1925

EUR/USD Video 11.03.21.

Euro Is Mostly Flat Against U.S. Dollar

EUR/USD  is currently testing the resistance at 1.1925 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle below the support at 91.75 but failed to develop sufficient downside momentum. In case the U.S. Dollar Index gets below this level, it will move towards the support at 91.50 which will be bullish for EUR/USD.

Yesterday, inflation reports from the U.S. indicated that core inflation was not moving higher. The weaker-than-expected inflation reports put some pressure on the American currency, but it remains to be seen whether the U.S. dollar will be able to gain additional downside momentum.

Today, foreign exchange market traders will focus on ECB Interest Rate Decision and the subsequent commentary. Just like U.S., EU is facing some pressure from rising government bond yields, so the market expects that ECB will comment on this issue. The European economy remains weak so commentary on additional stimulus is also possible.

Technical Analysis

EUR/USD managed to settle above the resistance at 1.1900 and is trying to settle above the next resistance level at 1.1925. In case this attempt is successful, EUR/USD will move towards the resistance which is located at 1.1965.

A move above the resistance at 1.1965 will open the way to the test of the resistance at the psychologically important level at 1.2000. The 20 EMA is in the nearby, so this resistance level is set to be a strong obstacle on the way up for EUR/USD.

In case EUR/USD settles above 1.2000, it will head towards the next resistance level at 1.2040.

On the support side, the previous resistance at 1.1900 will serve as the first support level for EUR/USD. A move below this level will push EUR/USD towards the support at 1.1880. In case EUR/USD declines below the support at 1.1880, it will head towards the support at 1.1850.

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