EUR/USD Video 23.02.21.
Euro Gains Ground Against U.S. Dollar
EUR/USD managed to settle above the resistance at 1.2155 and is trying to get above the next resistance level at 1.2175 while the U.S. dollar is flat against a broad basket of currencies.
The U.S. Dollar Index is currently trying to move below the nearest support level at 90. If the U.S. Dollar Index manages to get below this level, it will gain additional downside momentum and head towards the support at 89.75 which will be bullish for EUR/USD.
Today, foreign exchange market traders will focus on inflation data from the Eurozone. Analysts expect that Euro Area Inflation Rate increased by 0.2% month-over-month in January. On a year-over-year basis, Inflation Rate is projected to grow by 0.9%. Core Inflation Rate is expected to grow by 1.4% year-over-year.
Traders will also continue to monitor the developments in the U.S. government bond markets. Treasury yields remain close to multi-month highs, but the recent increase in yields did not provide support to the U.S. dollar as stimulus expectations put pressure on the American currency.
EUR/USD gained upside momentum after it managed to settle above the major resistance level at 1.2130. It has already managed to get above the next resistance level at 1.2155 and is trying to get above the resistance at 1.2175.
If EUR/USD settles above the resistance at 1.2175, it will head towards the next resistance at 1.2220. RSI remains in the moderate territory, and there is plenty of room to gain additional momentum in case the right catalysts emerge. If EUR/USD gets above the resistance at 1.2220, it will move towards the next resistance level which is located at 1.2250.
On the support side, the previous resistance at 1.2155 will serve as the first support level for EUR/USD. If EUR/USD declines below this level, it will head towards the support at 1.2130. A move below the support at 1.2130 will open the way to the test of the support at the 20 EMA at 1.2115.
For a look at all of today’s economic events, check out our economic calendar.