EUR/USD Forecast: Nearing a critical resistance area

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.2153

The February German IFO survey on Business Climate beat the market’s expectations.

US Treasury yields reached fresh one-year highs ahead of the opening.

EUR/USD turned bullish in the near-term but remains below the 1.2170/80 price zone.

The EUR/USD pair is up this Monday, now trading a few pips above Friday’s high at 1.2144. Major pairs are trapped between the scarce dollar’s demand, falling equities and soaring government debt yields. The greenback seesaws between gains and losses alongside Treasury yields, which soared in pre-opening trading to fresh one-year highs.

Data wise, Germany published the February IFO Business Climate, which improved to 92.4 from a revised 90.3, as expectations and the assessment of the current situation improved by more than anticipated. The US released the January Chicago Fed National Activity Index, which improved to 0.66 from 0.41, beating the market’s forecast. The country will publish later today the February Dallas Fed Manufacturing Business Index.

EUR/USD short-term technical outlook

The EUR/USD pair is bullish in the near-term but approaching the critical 1.2170/80 resistance area, as the pair has been unable to break above it for over a month already. The 4-hour chart shows that the pair accelerates north, surpassing a bearish 200 SMA, while technical indicators resumed their advances within positive levels, supporting additional gains ahead.

Support levels: 1.2100 1.2060 1.2015

Resistance levels: 1.2180 1.2215 1.2250

View Live Chart for the EUR/USD

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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