EUR/USD Daily Forecast – Test Of Support At 1.1925

EUR/USD Video 15.03.21.

Euro Is Losing Ground Against U.S. Dollar

EUR/USD is currently trying to settle below the support at 1.1925 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index is moving higher at the beginning of the week. It has managed to get above the resistance at 91.75 and is heading towards the next resistance level at 92. In case the U.S. Dollar Index gets to the test of this level, EUR/USD will find itself under additional pressure.

On Friday, EU reported that Euro Area Industrial Production increased by 0.8% month-over-month compared to analyst consensus which called for growth of 0.2%. On a year-over-year basis, Euro Area Industrial Production grew by 0.1% while analysts called for a decline of 2.4%.

The reports were stronger than expected but failed to provide support to euro as foreign exchange market traders focused on rising Treasury yields. The yields of U.S. government bonds continue to move higher at the beginning of the week as traders expect higher inflation after the new round of economic stimulus in the U.S. If Treasury yields get to new highs, the U.S. dollar will get additional support.

Technical Analysis

EUR/USD managed to settle below 1.1965 and is currently testing the support at 1.1925. If this test is successful, EUR/USD will move towards the next support level at 1.1900.

A move below the support at 1.1900 will push EUR/USD towards the next support which is located at 1.1880. If EUR/USD declines below the support at 1.1880, it will head towards the next support level at 1.1850.

On the upside, the nearest resistance level for EUR/USD is located at 1.1965. If EUR/USD gets above this level, it will head towards the next resistance at the 20 EMA at 1.1995. A move above the 20 EMA will open the way to the test of the resistance at 1.2040.

From a big picture point of view, EUR/USD needs to get above the 20 EMA at 1.1995 in order to gain additional upside momentum and continue its rebound.

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