EUR/USD Daily Forecast – U.S. Dollar Is Under Pressure Against Euro

EUR/USD Video 14.04.21.

Euro Gains Ground Against U.S. Dollar

EUR/USD is currently trying to settle above the resistance at 1.1965 while the U.S. dollar remains under pressure against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get below the 50 EMA at 91.80 and is moving towards the support at 91.50. In case the U.S. Dollar Index gets to the test of this level, EUR/USD will get more support.

Yesterday, EU reported that Euro Area ZEW Economic Sentiment Index decreased from 74 in March to 66.3 in April compared to analyst consensus of 77. The report indicated that the third wave of the virus put pressure on economic sentiment. However, the disappointing report did not put any pressure on euro as foreign exchange market traders focused on falling Treasury yields after the release of U.S. inflation reports.

Today, traders will have a chance to take a look at Euro Area Industrial Production report for February. Analysts expect that Industrial Production declined by 1.1% month-over-month in February after growing by 0.8% in January. On a year-over-year basis, Industrial Production is expected to decrease by 0.9%.

Technical Analysis

EUR/USD managed to settle above the 50 EMA at 1.1925 and is testing the next resistance level at 1.1965. In case this test is successful, EUR/USD will move towards the next resistance at 1.1990. RSI remains in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

If EUR/USD manages to settle above the resistance at 1.1990, it will head towards the next resistance level which is located at 1.2025. A successful test of this level will open the way to the test of the next resistance at 1.2040.

On the support side, the previous resistance level at the 50 EMA at 1.1925 will serve as the first support level for EUR/USD. If EUR/USD declines below the 50 EMA, it will head towards the support at 1.1900. A move below this level will push EUR/USD towards the support at the 20 EMA at 1.1880.

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