EUR/USD Daily Forecast – U.S. Dollar Tries To Gain More Ground At The Start Of The Week

EUR/USD Video 22.03.21.

Euro Is Moving Lower Against U.S. Dollar

EUR/USD is testing the nearest support level at 1.1880 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index is making another attempt to settle above the nearest resistance level at 92. If this attempt is successful, EUR/USD will move towards the next resistance level at 92.25 which will be bearish for EUR/USD.

There are no important economic reports scheduled to be released in the EU today so foreign exchange market traders will focus on general market sentiment and dynamics of U.S. Treasury yields. In addition, traders will follow the latest coronavirus updates from Europe which is facing the third wave of the virus.

Europe’s problems with coronavirus have served as a material bearish catalyst for the euro this year. European governments are forced to impose various virus-containment measures which will inevitably put additional pressure on the European economy.

On Wednesday, EU will provide flash readings of Euro Area Manufacturing PMI and Euro Area Services PMI reports for March, and traders will have a chance to evaluate how the economy is dealing with the third wave of the virus.

Technical Analysis

EUR/USD faced resistance at 1.1900 and declined towards the nearest support level at 1.1880. Currently, EUR/USD is trying to settle below this level. In case this attempt is successful, EUR/USD will head towards the next support level at 1.1850.

A move below 1.1850 will open the way to the test of the support at 1.1830. In case EUR/USD settles below the support at 1.1830, it will head towards the next support level at 1.1800.

On the upside, the nearest resistance level for EUR/USD is located at 1.1900. This resistance level has been recently tested and proved its strength. In case EUR/USD manages to get above the resistance at 1.1900, it will head towards the next resistance level at 1.1925. A move above the resistance at 1.1925 will push EUR/USD towards the next resistance at the 20 EMA at 1.1955.

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