EUR/USD Daily Forecast – Euro Attempts To Rebound

EUR/USD Video 01.04.21.

U.S. Dollar Is Mostly Flat Against Euro

EUR/USD did not manage to settle below the support at 1.1720 and tries to rebound while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to get to the test of the nearest resistance level which is located at the recent highs at 93.40 but failed to develop sufficient upside momentum and pulled back. If the U.S. Dollar Index gets to the test of this resistance level, EUR/USD will find itself under more pressure.

Yesterday, EU reported that Euro Area Inflation Rate increased by 1.3% year-over-year in March, in line with the analyst consensus. Euro Area Core Inflation Rate grew by 0.9% compared to analyst consensus of 1.1%. There is no pricing pressure in the Euro Area as the EU economy remains weak due to the third wave of the virus.

Today, EU will provide the final reading of Manufacturing PMI report. Analysts expect that Manufacturing PMI will grow from 57.9 in February to 62.4 in March.

Foreign exchange market traders will also focus on the U.S. job market data which will be released later today. Initial Jobless Claims are expected to decrease from 684,000 to 680,000 while Continuing Jobless Claims are projected to decline from 3.87 million to 3.78 million.

EUR/USD received support near 1.1720 and is trying to rebound. If EUR/USD manages to gain some upside momentum, it will head towards the resistance at 1.1750.

A move above the resistance at 1.1750 will push EUR/USD towards the next resistance level which is located at 1.1775. A successful test of this level will open the way to the test of the next resistance at 1.1800.

On the support side, EUR/USD needs to settle below the support at 1.1720 to continue its downside move. The next support level for EUR/USD is located at 1.1690. In case EUR/USD declines below the support at 1.1690, it will head towards the next support level at 1.1660.