EUR/USD Daily Forecast – Test Of Support At 1.1900
EUR/USD Video 08.03.21.
Euro Is Losing Ground Against U.S. Dollar
EUR/USD is currently trying to settle below 1.1900 while the U.S. dollar is attempting to gain more ground against a broad basket of currencies.
The U.S. Dollar Index has managed to get above the resistance at the 92 level and is slowly moving towards the next resistance level which is located at 92.25. If the U.S. Dollar Index gets to the test of this level, EUR/USD will find itself under more pressure.
Today, foreign exchange market traders have chance to take a look at Industrial Production report from Germany. Industrial Production decreased by 2.5% month-over-month in January compared to analyst consensus which called for growth of 0.2%.
The disappointing report from Germany may put additional pressure on the euro which is moving lower because of Europe’s economic problems and rising yields in the U.S.
Currently, the yield of 10-year Treasuries is trying to settle above 1.59% while the yield of 30-year Treasuries is testing the 2.31% level. If Treasury yields continue to move higher, the U.S. dollar may get additional support.
EUR/USD is currently trying to settle below the support level at 1.1900. RSI is close to the oversold territory but there is plenty of room to gain additional downside momentum in case the right catalysts emerge.
If EUR/USD settles below the support at 1.1900, it will head towards the next support level at 1.1880. A move below this level will push EUR/USD towards the next support at 1.1850. In case EUR/USD declines below the support at 1.1850, it will head towards the support at 1.1830.
On the upside, EUR/USD needs to stay above 1.1900 to have a chance to gain upside momentum in the near term. The next resistance level for EUR/USD is located at 1.1925.
If EUR/USD gets above the resistance at 1.1925, it will head towards the next resistance level at 1.1965. A move above this level will open the way to the test of the resistance at 1.2000.
For a look at all of today’s economic events, check out our economic calendar.