EUR/USD Daily Forecast – U.S. Dollar Moves Higher Against Euro

EUR/USD Video 03.06.21.

Euro Is Losing Ground Against U.S. Dollar

EUR/USD is currently moving towards the support at the 20 EMA at 1.2180 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index is trying to get to the test of the resistance at the 20 EMA at 90.20. In case the U.S. Dollar Index manages to settle above the 20 EMA, it will get to the test of the next resistance level at 90.30 which will be bearish for EUR/USD.

Today, the EU will release the final reading of Euro Area Services PMI report for May which is expected to show that Euro Area Services PMI increased from 50.5 to 55.1.

Foreign exchange market traders will also have a chance to take a look at the final reading of U.S. Services PMI report which is projected to show that U.S. Services PMI improved from 64.7 to 70.1.

Traders will also focus on the latest employment data from the U.S. Initial Jobless Claims are projected to decline from 406,000 to 390,000 while Continuing Jobless Claims are expected to decrease from 3.64 million to 3.62 million. ADP Employment Change report is expected to show that private businesses added 650,000 jobs in May. These reports may have a material impact on currency dynamics so traders should expect increased volatility during the day.

Technical Analysis

EUR/USD managed to settle below the support at 1.2200 and is trying to get to the test of the next support level which is located at the 20 EMA at 1.2180.

In case EUR/USD declines below this level, it will head towards the next support at 1.2155. A successful test of the support at 1.2155 will push EUR/USD towards the support at 1.2130. If EUR/USD gets below this level, it will move towards the next support at 1.2115.

On the upside, the previous support at 1.2200 will serve as the first resistance level for EUR/USD. If EUR/USD manages to get above this level, it will head towards the next resistance at 1.2220. A move above 1.2220 will open the way to the test of the resistance at 1.2250.

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