EUR/USD Daily Forecast – Euro Moves Lower Against U.S. Dollar

EUR/USD is trying to gain downside momentum below 1.1900.
Resistance At The 50 EMA Stays Strong
EUR/USD is currently trying to settle below 1.1900 while the U.S. dollar is moving higher against a broad basket of currencies.
The U.S. Dollar Index is currently testing the resistance level at the 20 EMA at 92.30. A move above this level will push the U.S. Dollar Index towards the next resistance at 92.50 which will be bearish for EUR/USD.

Today, foreign exchange market traders will have a chance to take a look at Euro Area ZEW Economic Sentiment Index for April. Analysts expect that Euro Area ZEW Economic Sentiment Index increased from 74 in March to 77 in April despite the negative impact of the third wave of coronavirus in Europe. In Germany ZEW Economic Sentiment Index is projected to impove from 76.6 to 79.

Euro has recently managed to gain some ground against U.S. dollar but traders will continue to closely monitor economic data from Europe as the rebound of the European economy remains fragile. If the upcoming reports indicate that the rebound of the Euro Area economy is starting to slow down, euro will find itself under pressure.
Technical Analysis
EUR/USD declined below the support at 1.1900 and is moving towards the next support level at 1.1880. In case EUR/USD manages to settle below the support at 1.1880, it will head towards the next support which is located at the 20 EMA at 1.1865.

A successful test of the support at the 20 EMA will open the way to the test of the next support level at 1.1850. If EUR/USD gets below the support at 1.1850, it will move towards the next support at 1.1830.

On the upside, EUR/USD needs to get above 1.1900 to get to the test of the resistance at the 50 EMA at 1.1920. The resistance at the 50 EMA has been tested several times in recent trading sessions and proved its strength. A move above this resistance level will open the way to the test of the next resistance at 1.1965.