EUR/USD Daily Forecast – U.S. Dollar Attempts To Gain Ground Against Euro

EUR/USD Video 28.05.21.

Another Test Of Support At 1.2175

EUR/USD is currently trying to settle below the support at 1.2175 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index managed to get above the resistance at the 90 level. The next resistance level is located at 90.30, and the U.S. Dollar Index is slowly moving towards this level.

Today, foreign exchange market traders will have a chance to take a look at the the final reading of Euro Area Consumer Confidence report for May. Analysts expect that Consumer Confidence improved from -8.1 in April to -5.1 in May but remained under pressure due to the negative impact of the pandemic.

Euro Area Industrial Sentiment is projected to improve from 10.7 in April to 11.3 in May while Euro Area Services Sentiment is expected to increase from 2.1 to 7.5.

In the U.S., Personal Income is expected to decrease by 14.1% month-over-month in April as March’s numbers were boosted by stimulus payments while Personal Spending is projected to grow by 0.5%. The final reading of Michigan Consumer Sentiment report is projected to show that Consumer Sentiment declined from 88.3 in April to 82.9 in May.

Technical Analysis

EUR/USD has recently made another attempt to settle below the support at 1.2175 but failed to develop sufficient downside momentum. In case EUR/USD declines below this level, it will move towards the support which is located at the 20 EMA at 1.2160.

A move below the 20 EMA at 1.2160 will push EUR/USD towards the next support level at 1.2130. In case EUR/USD declines below this level, it will head towards the support at 1.2115.

On the upside, the nearest resistance level for EUR/USD is located at 1.2220. If EUR/USD manages to get above this level, it will move towards the resistance at 1.2250. In case EUR/USD gets above the resistance at 1.2250, it will head towards the resistance which is located at 1.2280.

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