EUR/USD Daily Forecast – Test Of Resistance At 1.1775

EUR/USD settled above the resistance at 1.1750 and is trying to settle above the next resistance at 1.1775.
Euro Tries To Gain More Ground Against U.S. Dollar
EUR/USD is currently tryng to settle above the resistance at 1.1775 while the U.S. dollar is moving lower against a broad basket of currencies.
The U.S. Dollar Index settled below the support at 93 and is moving towards the next support at 92.70. If the U.S. Dollar Index manages to settle below 92.70, it will head towards the support at 92.50 which will be bullish for EUR/USD.

Yesterday, EU reported that Euro Area Manufacturing PMI increased from 57.9 in Februry to 62.5 in March compared to analyst consensus of 62.4. The report indicated that the rebound of the manufacturing segment continued despite the third wave of coronavirus in Europe.

European countries were forced to extend virus-related restrictions until late April, and fears about their negative impact have put significant pressure on the euro in recent weeks. While euro is trying to rebound, foreign exchange market traders will continue to monitor the situation with coronavirus in Europe.
EUR/USD is testing the resistance level at 1.1775. This resistance level has already been tested several times in recent trading sessions and proved its strength. In case EUR/USD manages to settle above the resistance at 1.1775, it will move towards the next resistance level at 1.1800.

A successful test of the resistance at 1.1800 will push EUR/USD towards the resistance at 1.1830. If EUR/USD gets above this level, it will get to the test of the next resistance which is located at the 20 EMA at 1.1840.

On the support side, the nearest support for EUR/USD is located at 1.1750. If EUR/USD gets below this level, it will move towards the support at 1.1720. EUR/USD made several attempts to get below this level in recent trading sessions but failed to develop sufficient downside momentum. In case EUR/USD declines below the support at 1.1720, it will continue its downside move and head towards the support at 1.1690.

From a big picture point of view, EUR/USD remains in a downside trend, and it will need additional bullish catalysts to get back to the upside mode.