FX.co ★ EUR/USD Price Forecast, 1st March 2021

EUR/USD struggles around 1.2050 amid dollar strength, ahead of US PMI. The Euro remains firmly in red and extends weakness on Monday, despite solid EU PMI data, weighed by Friday's massive bearish daily candle , making the biggest one-day fall since 19 Mar 2020).

EUR/USD is pressured around 1.2050 as returns on US debt advance, supporting the dollar. German states have reported mixed CPI reads for February. The US ISM Manufacturing PMI and the ECB's weekly bond purchases are awaited.

Euro/dollar has been suffering from downside momentum on the four-hour chart. Critical resistance awaits at 1.2100, which is the confluence of the trend-line breakout region and also a swing low seen last week. Beyond 1.2110, the next cap to watch is 1.2150, which held EUR/USD down in mid-February. It is followed by 1.2180, a resistance line from last week, and then by 1.2220.

Technical indicators hover near oversold readings, partially losing their bearish strength as the pair bounced from daily lows. Nevertheless, the risk remains skewed to the downside. Support awaits at the daily low of 1.2030, followed by further down 1.1960 February swing low await the currency pair