EUR/USD Daily Forecast – U.S. Dollar Rebounds Against EuroEUR/USD failed to settle above the 20 EMA and pulled back towards the support at 1.2155.
EUR/USD Video 07.06.21.
Euro Declines Against U.S. Dollar
EUR/USD is currently trying to settle below the support at 1.2155 while the U.S. dollar is gaining ground against a broad basket of currencies.
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The U.S. Dollar Index managed to get above the 20 EMA at 90.20 and tries to develop additional upside momentum. In case this attempt is successful, it will head towards the resistance at 90.50 which will be bearish for EUR/USD.
On Friday, EU reported that Euro Area Retail Sales declined by 3.1% month-over-month in April compared to analyst consensus which called for a decline of 1.2%. On a year-over-year basis, Retail Sales increased by 23.9% as Retail Sales were extremely weak in April 2020.
Germany has recently released Factory Orders report which indicated that Factory Orders declined by 0.2% month-over-month in April compared to analyst consensus which called for growth of 1%.
Tomorrow, foreign exchange market traders will focus on the release of Euro Area ZEW Economic Sentiment Index for June. Analysts expect that ZEW Economic Sentiment Index increased from 84 in May to 84.9 in June, but recent economic reports suggest that traders should be ready for a negative surprise.
EUR/USD faced resistance at the 20 EMA at 1.2170 and pulled back below the support level at 1.2155. In case EUR/USD manages to settle below this level, it will move towards the next support at 1.2130.
A successful test of the support at 1.2130 will open the way to the test of the next support level which is located at the 50 EMA at 1.2115. A move below the 50 EMA will signal that EUR/USD will try to develop additional downside momentum.
On the upside, the nearest significant resistance level for EUR/USD is located at the 20 EMA at 1.2170. If EUR/USD manages to settle above this level, it will head towards the next resistance at 1.2200. A successful test of the resistance at 1.2200 will push EUR/USD towards the resistance at 1.2220. If EUR/USD gets above this level, it will move towards the resistance at 1.2250.
For a look at all of today’s economic events, check out our economic calendar.