EUR/USD Daily Forecast – Euro Tries To Rebound After Sell-Off

EUR/USD Video 01.03.21.

Euro Attempts To Gain Ground Against U.S. Dollar

EUR/USD is currently trying to settle back above the resistance at 1.2080 while the U.S. dollar is under pressure against a broad basket of currencies.

The U.S. Dollar Index is currently moving towards the support level which is located at the 50 EMA at 90.65. If the U.S. Dollar Index manages to get below this level, it will move towards the next support level at the 20 EMA at 90.50 which will provide additional support to EUR/USD.

Today, EU will release the final reading of Manufacturing PMI report for February. Analysts expect that Manufacturing PMI increased from 54.8 in January to 57.7 in February.

Foreign exchange market traders will also keep an eye on the latest developments in the U.S. government bond market. The yields of U.S. Treasuries have pulled back from multi-month highs, but the continuation of the previous upside trend may provide additional support to the U.S. dollar.

Technical Analysis

EUR/USD is trying to rebound after the recent sell-off and is testing the nearest resistance level at 1.2080. If this test is successful, EUR/USD will move towards the next resistance which is located at the 50 EMA at 1.2110. The 20 EMA is located at the same level so EUR/USD will likely face significant resistance near 1.2110.

In case EUR/USD manages to settle above the 50 EMA at 1.2110, it will head towards the next resistance level at 1.2130. A move above 1.2130 will open the way to the test of the resistance at 1.2155.

If EUR/USD gets above 1.2155, it will move towards the resistance at 1.2175. While EUR/USD has recently managed to get above this resistance level, it quickly moved back below 1.2175 so this level will likely remain a major obstacle on the way up.

On the support side, the nearest support level for EUR/USD is located at 1.2060. If EUR/USD declines below this level, it will move towards the support at 1.2040. A successful test of the support at 1.2040 will open the way to the test of the next support level at 1.2000.

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