EUR/USD Video 09.06.21.
Euro Tries To Gain Some Ground Against U.S. Dollar
EUR/USD is currently trying to get to the test of the resistance at 1.2200 while the U.S. dollar is losing ground against a broad basket of currencies.
The U.S. Dollar Index has recently managed to get to test of the nearest support level at 90. In case this test is successful, the U.S. Dollar Index will head towards the support at 89.75 which will be bullish for EUR/USD.
Yesterday, EU released Euro Area ZEW Economic Sentiment Index report for June which indicated that Euro Area Economic Sentiment declined from 84 in May to 81.3 in June compared to analyst consensus of 84.9.
The report had little impact on EUR/USD dynamics as foreign exchange market traders remained focused on two key events. On Thursday, the U.S. will release inflation data for May while the European Central Bank will announce its Interest Rate Decision.
At this point, the market does not expect any surprises from ECB, although the Bank’s commentary may have a material impact on EUR/USD dynamics. Meanwhile, U.S. inflation data will likely serve as the key catalyst for EUR/USD.
EUR/USD received support at the 20 EMA at 1.2175 and is trying to move higher. The nearest resistance level for EUR/USD is located at 1.2200.
In case EUR/USD manages to settle above this resistance level, it will head towards the next resistance which is located at 1.2220. A successful test of the resistance at 1.2220 will open the way to the test of the next resistance at 1.2250.
On the support side, EUR/USD needs to settle below the 20 EMA at 1.2175 to have a chance to develop downside momentum in the near term. The next support level is located at 1.2155. If EUR/USD gets below this level, it will head towards the support at 1.2130.
From a big picture point of view, EUR/USD remains stuck in a tight range as traders wait for key catalysts.
For a look at all of today’s economic events, check out our economic calendar.