EUR/USD Daily Forecast – Test Of Resistance At 1.2020

EUR/USD Video 06.05.21.

Euro Tries To Gain More Ground Against U.S. Dollar

EUR/USD is currently trying to get back above the resistance at the 20 EMA at 1.2020 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index did not manage to settle above the resistance at the 20 EMA at 91.30 but stays close to this level. The nearest support level for the U.S. Dollar Index is located at the 91 level. If the U.S. Dollar Index gets to the test of this level, EUR/USD will get more support.

Today, foreign exchange market traders will have a chance to take a look at Euro Area Retail Sales data for March. Analysts expect that Retail Sales increased by 1.5% month-over-month in March after growing by 3% in February. On a year-over-year basis, Retail Sales are projected to increase by 9.6% as Retail Sales were under significant pressure in March 2020.

Meanwhile, the U.S. will release Initial Jobless Claims and Continuing Jobless Claims reports. Initial Jobless Claims are expected to decline from 553,000 to 540,000 while Continuing Jobless Claims are projected to decrease from 3.66 million to 3.62 million.

Yesterday’s ADP Employment Change report was a bit worse than the analyst consensus but it still highlighted rapid employment growth, and the upcoming employment reports are also expected to show that the situation in the job market continues to improve.

Technical Analysis

EUR/USD is testing the resistance at the 20 EMA at 1.2020. In case this test is successful, EUR/USD will move towards the next resistance level at 1.2040.

A move above the resistance at 1.2040 will push EUR/USD towards the next resistance at 1.2060. In case EUR/USD manages to settle above this level, it will head towards the resistance which is located at 1.2090.

On the support side, the nearest support level for EUR/USD is located at the 50 EMA at 1.1990. This support level has been tested several times in recent trading sessions and proved its strength.

In case EUR/USD declines below the support at 1.1990, it will move towards the next support level at 1.1965. A successful test of the support at 1.1965 will push EUR/USD towards the support at 1.1925.

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