EUR / USD Video 10.06.21.
Euro is losing ground against the US dollar
EUR / USD managed to dip below the 20-EMA at 1.2175 and is slowly moving towards support at 1.2155, while the US dollar strengthens against a wide basket of currencies.
The US dollar index is currently trying to gain a foothold above the 20-day moving average resistance at 90.20. A move above that level would push the US Dollar Index towards resistance at 90.50, which would be bearish for EUR / USD.
Today, forex traders will focus on two key events. The US is to publish inflation data for May, and the European Central Bank is to announce its interest rate decision.
It is expected that the ECB will leave the interest rate unchanged, so traders will focus on the Bank’s comments, which could have a significant impact on the dynamics of the currency.
In the US, the key question is whether inflation rose above 5% in May (the current analyst consensus is 4.7%).
Traders will also have a glimpse of the latest labor market data: US jobless claims are expected to decline from 385,000 to 370,000, while jobless claims are projected to fall from 3.77 million to 3.6 million.
EUR / USD is now trying to break through to the test of the 1.2155 support level. The RSI is in temperate territory and there is plenty of room for a downside movement should the right catalysts emerge.
If EUR / USD manages to gain a foothold below 1.2155, it will head towards the next support level at 1.2130. The 50-EMA is located nearby, so the EUR / USD pair could get strong support around 1.2130. A move below the 50-EMA will lead to a test of support at 1.2115.
On the other hand, a move above the 20-day EMA at 1.2175 would open the way for a test of the 1.2200 resistance. If EUR / USD rises above this level, it will head towards the next resistance at 1.2220. If EUR / USD manages to gain a foothold above the resistance at 1.2220, it will head towards the resistance at 1.2250.
For all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire