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EUR/USD Daily Forecast – Test Of Support At 1.2025

By:
Vladimir Zernov
Published: Apr 21, 2021, 07:48 UTC

EUR/USD declined below the support at 1.2040 and is testing the next support level at 1.2025.

EUR/USD Daily Forecast – Test Of Support At 1.2025

In this article:

EUR/USD Video 21.04.21.

Euro Pulls Back Against U.S. Dollar

EUR/USD is currently trying to settle below the support at 1.2025 while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index is slowly moving towards the nearest resistance level at 91.30. If the U.S. Dollar Index manages to settle above this level, it will head towards the resistance at 91.50 which will be bearish for EUR/USD.

There are no important economic reports scheduled to be released in the U.S. and EU today so foreign exchange market traders will focus on general market sentiment and developments in U.S. government bond markets.

EUR/USD managed to move from 1.1700 at the beginning of this month to the recent highs at 1.2080 without any notable pullback, and it remains to be seen whether it has sufficient upside catalysts to continue this upside move in the near term.

Treasury yields have declined from recent highs which served as a bearish catalyst for the U.S. dollar. At the same time, the recovery of the U.S. economy is much stronger than the recovery of the EU economy which remains under pressure from the third wave of the virus, and the relative weakness of the EU economy may ultimately serve as a bearish catalyst for euro after the recent rally.

Technical Analysis

eur usd april 21 2021

EUR/USD is currently testing the nearest support level at 1.2025. In case this test is successful, EUR/USD will move towards the next support which is located at 1.1990.

In case EUR/USD declines below the support at 1.1990, it will move towards the next support at 1.1965. A successful test of this level will open the way to the test of the support at the 50 EMA at 1.1945.

On the upside, the nearest resistance level for EUR/USD is located at 1.2040. If EUR/USD manages to settle above this level, it will move towards the next resistance level at 1.2060. A move above the resistance at 1.2060 will push EUR/USD towards the resistance at 1.2090.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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