EUR/USD Daily Forecast – U.S. Dollar Stays Strong Against Euro

Euro Is Flat Against U.S. Dollar

EUR/USD managed to get below the 50 EMA at 1.2120 and is trying to settle below 1.2100 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle above the 50 EMA at 90.60 but failed to develop sufficient upside momentum and pulled back towards 90.50. If the U.S. Dollar Index declines below 90.50, it will move towards the support at 90.30 which will be bullish for EUR/USD.

Today, foreign exchange market traders will have a chance to take a look at Euro Area Industrial Production report for April. Analysts expect that Euro Area Industrial Production increased by 0.4% month-over-month in April after growing by 0.1% in March. On a year-over-year basis, Euro Area Industrial Production is projected to increase by 37.4% as it was under huge pressure in April 2020.

It remains to be seen whether the U.S. dollar will be able to gain significant momentum ahead of the Fed Interest Rate Decision, which will be released on Wednesday. However, U.S. Retail Sales, Industrial Production, Manufacturing Production and Producer Prices reports, which will be published on Tuesday, may serve as sufficient catalysts for significant moves.

Technical Analysis

EUR/USD is currently trying to get below 1.2100. In case this attempt is successful, it will head towards the support level which is located at 1.2080.

A successful test of the support at 1.2080 will open the way to the test of the next support level at 1.2060. If EUR/USD gets below this level, it will move towards the support at 1.2040.

On the upside, the nearest resistance level for EUR/USD is located at the 50 EMA at 1.2120. If EUR/USD gets above this level, it will get to the test of the next resistance at 1.2130.

In case EUR/USD manages to settle above the resistance at 1.2130, it will move towards the next resistance at 1.2155. A move above the resistance at 1.2155 will open the way to the test of the resistance at 1.2175.

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