EUR/USD Daily Forecast – U.S. Dollar Is Under Pressure Ahead Of The Weekend

·2 min read

EUR/USD Video 14.05.21.

Euro Gains Ground Against U.S. Dollar

EUR/USD managed to get above the resistance at 1.2090 and is moving higher while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get below the support at 90.70 and is moving towards the next support at 90.50. If the U.S. Dollar Index declines below this level, it will head towards the support at 90.30 which will be bullish for EUR/USD.

Yesterday, U.S. reported that Initial Jobless Claims declined from 507,000 (revised from 498,000) to 473,000 while Continuing Jobless Claims decreased from 3.7 million (revised from 3.69 million) to 3.66 million. The reports indicated that the situation in the job market continued to improve, and they had little impact on the foreign exchange market.

Today, traders will focus on Retail Sales data from the U.S. Retail Sales are projected to increase by 1% month-over-month in April after growing by 9.8% in March.

Traders will also keep an eye on the preliminary Consumer Sentiment data for May. Analysts expect that Consumer Sentiment improved from 88.3 in April to 90.4 in May thanks to the stimulus and the robust rebound of the U.S. economy.

Technical Analysis

EUR/USD managed to settle above the resistance at 1.2090 and is trying to get above the next resistance level at 1.2115. If this attempt is successful, EUR/USD will move towards the resistance at 1.2130.

A move above the resistance at 1.2130 will push EUR/USD towards the next resistance level at 1.2155. In case EUR/USD manages to settle above this level, it will head towards the resistance which is located at the recent highs at 1.2175.

On the support side, the previous resistance level at 1.2090 will serve as the first support level for EUR/USD. If EUR/USD declines below this level, it will head towards the support at the 20 EMA at 1.2075.

A move below the 20 EMA will open the way to the test of the support at 1.2060. If EUR/USD gets below this level, it will move towards the support at 1.2040.

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

This article was originally posted on FX Empire


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