Forex. Euro/Dollar EUR/USD forecast for today, May 28, 2021
The Euro/Dollar exchange rate is trading near the level of 1.2200. On Thursday, the quotes quickly overcame an early drop to the level of 1.2170, which coincides with the Fibonacci level, amid the resumption of the dollar's selling trend.
However, investors' attention still remains on the rollout of the vaccine in the Old World, as well as on the growing optimism of the growth prospects. Earlier, the consumer confidence index in Italy improved to 110.2 this month, and the consumer climate indicator in Germany fell to -7 points in June.
In the US, the focus was on another revision of GDP for the first quarter. The data showed an increase of 6.4%, although more significant growth was expected.
The Euro/Dollar exchange rate hit a new 4-month high this week. This momentum continues to be largely underpinned by an improvement in risk-averse sentiment and a continued sell-off in the dollar amid growing optimism about the recovery in the euro area. In addition, the key fundamentals were higher than expected, and this also supports the optimism around the pair. Despite the pullback in the second half of the week, the quotes still remain close to the annual high of 1.2350. Further estimates suggest a new round of the single currency exchange rate.
Signals for trading EUR/USD currency pair
In our forecast, we expect the Euro/Dollar exchange rate to rise to the resistance levels of 1.2220, 1.2240 and 1.2270.