EUR/USD Hot Forecast for 3rd May, 2021

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EUR/USD is trading around 1.2050, rising from the lows as the US dollar is dragged down by falling Treasury yields. The euro benefits from the EU's intention to loosen travel restrictions amid vaccination progress. The US ISM Manufacturing PMI is eyed.

Momentum on the four-hour chart has turned to the downside and the currency pair dipped below the Month old ascending trendline. The Relative Strength Index (RSI) also sheds ground, but it is holding above 30 – thus outside oversold conditions.

On the flip side, the development of MACD indicator (bearish divergence) hints at swelling downside momentum.

Critical support is at 1.1990, just below the psychological barrier of 1.20. That was a clear separator of ranges last month. It is followed by 1.1950, 1.1930, and then 1.1860.

Some resistance is at 1.2070, a significant support resistance line from last week, and then 1.2110, both swing highs on the way up. The April peak of 1.2150 is the next level to watch.

The material has been provided by InstaForex Company - www.instaforex.com

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