EUR/USD Video 27.04.21.
Euro Pulls Back Against U.S. Dollar
EUR/USD is trying to get to the test of the support at 1.2060 while the U.S. dollar is moving higher against a broad basket of currencies.
The U.S. Dollar Index is currently trying to move above the resistance level at 91. In case this attempt is successful, it will head towards the resistance at 91.30 which will be bearish for EUR/USD.
There are no important economic reports scheduled to be published in the EU today so foreign exchange market traders will focus on the economic data from the U.S. which will release Consumer Confidence data for April and publish Case-Shiller Home Price Index for February.
It should be noted that Treasury yields have gained some ground in recent trading sessions which provided support to the American currency. However, it remains to be seen whether the U.S. dollar will be able to gain sustainable upside momentum as robust economic rebound provides support to riskier currencies.
EUR/USD declined below 1.2090 and is moving towards the support level at 1.2060. In case EUR/USD manages to settle below the support at 1.2060, it will head towards the next support level which is located at 1.2040. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.
A move below the support at 1.2040 will open the way to the test of the support at 1.2025. If EUR/USD settles below 1.2025, it will move towards the next support which is located at the 20 EMA at 1.1990.
On the upside, the nearest resistance level for EUR/USD is located at 1.2090. If EUR/USD gets above this level, it will head towards the next resistance at 1.2115. This resistance level has been tested during yesterday’s trading session and proved its strength. If EUR/USD manages to settle above 1.2115, it will head towards the next resistance at 1.2130.
For a look at all of today’s economic events, check out our economic calendar.