Euro (EUR) inched higher against the U.S. Dollar (USD) this week, increasing the price of the EURUSD pair to more than 1.2100, after the release of the U.S. Michigan Consumer Sentiment Index.
Technical Analysis
As of this writing, the EURUSD pair consolidates around 1.2175. While moving upside, the pair might find some resistance near the given below price levels.
Short-Term Resistance
1.2257 – the high of December 20, 2020
1.2300 – the psychological level
1.2348 – the major horizontal resistance
On the downside, the pair might find some support near the given below price levels.
Short-Term Support
1.2035 – the lower trendline arm
1.1944 – the 23.6% Fib level support
1.1900 – the psychological number
U.S. Michigan Consumer Sentiment Index News
The University of Michigan released numbers for the Consumer Sentiment Index on Friday (February 12, 2021). Economists anticipated an increase in the Consumer Sentiment Index data for February 2021 by 1.8, as compared to the reading of 79, in the month before. However, the actual data remained 76.2, way lower than the economist’s expectation.
The Michigan Consumer Sentiment Index data reflect consumer confidence in the economic activity of the country. The data also indicates consumer spending patterns in the coming days. Generally speaking, a lower reading weakens the U.S. Dollar and suggests a bullish trend for the EURUSD pair and vice versa.
Conclusion
Given the macro-economic outlook of the pair over the past few days, here is a short-term trading plan for EURUSD. Try buying the EURUSD pair around 1.2000 or alternatively look for selling opportunities near the 1.2400 handle.