EUR/USD Daily Forecast – Test Of Support At 1.1850

EUR/USD Video 24.03.21.

Euro Remains Under Pressure Against U.S. Dollar

EUR/USD is currently trying to settle below the support at 1.1850 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index settled above the resistance at 92.25 and made an attempt to get to the test of the next resistance level at 92.50. If the U.S. Dollar Index manages to settle above the resistance at 92.50, it will head towards the next resistance at 92.70 which will be bearish for EUR/USD.

Today, foreign exchange market traders will have a chance to take a look at flash readings of Manufacturing PMI and Services PMI reports from the EU. Euro Area Manufacturing PMI is expected to decline from 57.9 in February to 57.7 in March while Euro Area Services PMI is projected to grow from 45.7 to 46. Numbers below 50 show contraction.

It remains to be seen whether PMI readings have improved compared to the previous month as Europe is dealing with the third wave of the virus which will likely put additional pressure on the economy. Worries about the negative impact of new virus containment measures have served as a material bearish catalyst for the euro in recent trading sessions.

Technical Analysis

EUR/USD gained strong downside momentum and managed to settle below the support at 1.1880. Currently, it is trying to settle below the next support level at 1.1850.

In case this attempt is successful, EUR/USD will get to the test of the support at 1.1830. A move below this level will push EUR/USD towards the support at 1.1800. If EUR/USD declines below the support at 1.1800, it will head towards the next support at 1.1750.

On the upside, a move above 1.1850 will push EUR/USD towards the resistance at 1.1880. If EUR/USD manages to settle above this resistance level, it will get to the test of the next resistance at 1.1900. A move above the resistance at 1.1900 will open the way to the test of the resistance at 1.1925.

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