EUR/USD Daily Forecast – Test Of Resistance At 1.2115

EUR/USD Video 26.04.21.

Euro Moves Higher Against U.S. Dollar

EUR/USD has recently made an attempt to settle above the resistance at 1.2115 while the U.S. dollar remained under pressure against a broad basket of currencies.

The U.S. Dollar Index is currently testing the support at 90.70. In case this test is successful, the U.S. Dollar Index will move towards the next support at 90.50 which will be bullish for EUR/USD.

On Friday, EU reported that Manufacturing PMI increased from 62.5 in March to 63.3 in April compared to analyst consensus of 62. Services PMI increased from 49.6 to 50.3. Numbers above 50 show expansion, so the European services segment has finally returned to growth.

Better-than-expected PMI reports provided support to euro while the U.S. dollar found itself under pressure against a broad basket of currencies as foreign exchange market traders decreased purchases of safe haven assets.

Today, traders will focus on the economic data from the U.S. Analysts expect that Durable Goods Orders increased by 2.5% month-over-month in March after declining by 1.1% in February.

Technical Analysis

EUR/USD managed to get above the resistance at 1.2090 and made an attempt to settle above the next resistance level which is located at 1.2115. In case EUR/USD settles above the resistance at 1.2115, it will get to the test of the next resistance at 1.2130. RSI is close to the overbought territory but there is plenty of room to gain additional momentum in case the right catalysts emerge.

A successful test of the resistance at 1.2130 will open the way to the test of the resistance at 1.2155. If EUR/USD gets above the resistance at 1.2155, it will head towards the next resistance level at 1.2175.

On the support side, a move below 1.2090 will open the way to the test of the support at 1.2060. If EUR/USD declines below the support at 1.2060, it will head towards the next support level at 1.2040. A move below this level will push EUR/USD towards the support at 1.2025.

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