EUR/USD Daily Forecast – U.S. Dollar Is Mostly Flat Against Euro

EUR/USD Video 16.04.21.

Resistance At 1.1990 Remains Strong

EUR/USD is currently testing the support at 1.1965 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index is currently trying to get to the test of the resistance level at 91.80. In case the U.S. Dollar Index manages to settle above this level, it will move towards the next resistance at 92 which will be bearish for EUR/USD.

Today, foreign exchange market traders will focus on the final readings of inflation reports from the EU. Analysts expect that Euro Area Inflation Rate increased by 0.9% month-over-month in March. On a year-over-year basis, Inflation Rate is projected to increase by 1.3%. Core Inflation Rate is projected to grow by 0.9%. There are no signs of significant inflation in the Euro Area as the European economy remains under pressure from the third wave of the virus.

Traders will also continue to monitor the developments in the U.S. government bond markets. Currently, Treasury yields are trying to gain some ground after yesterday’s downside move. If this attempt is successful, the American currency may get more support.

Technical Analysis

EUR/USD did not manage to settle above the resistance at 1.1990 and is trying to settle below the support at 1.1965. In case this attempt is successful, EUR/USD will move towards the next support level which is located at the 50 EMA at 1.1930.

A successful test of the support at the 50 EMA will open the way to the test of the next support at the 20 EMA at 1.1900. In case EUR/USD gets below this level, it will move towards the support at 1.1880.

On the upside, the nearest resistance level is located at 1.1990. If EUR/USD gets above this level, it will head towards the next resistance at 1.2025. A move above the resistance at 1.2025 will open the way to the test of the next resistance level which is located at 1.2040.

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