Forex. EUR/USD trading forecast and signal for today, May 6, 2021
On Wednesday, Euro/Dollar fell to the support level of 1.2000 on Forex.
ADP data showed that U.S. private sector employment increased by 742,000 jobs in April. The number was high, but still below market expectations of 800,000. ADP analysts noted that the labor market continues to accelerate and grow, showing the strongest performance since September 2020. As the economy recovers, there is an increase in the number of jobs. The US dollar has weakened significantly over the past 9-12 months, but the latest data allows us to expect a change in the trend in the very near future.
Nordea economists expect the euro / dollar rate to resume falling, as an improved macroeconomic environment and stronger inflation signals may convince the Fed to change the course of monetary policy earlier than expected. The United States may surpass all countries in terms of economic growth in 2021, which will eventually lead to a stronger dollar. First, Treasury bonds may still yield higher returns than similar securities from other countries. Second, the Fed is likely to respond to high growth rates with slightly tougher policies, possibly as early as this summer. A change in interest rate expectations may also lead to a reversal of the euro/dollar pair in the second half of this year. According to Nordea forecasts, the quotes will reach the range of 1.1500–1.1600.
EUR/USD trading signal for today May 6, 2021
The forecast assumes a decline in the Euro/Dollar on Forex to the levels of 1.1975, 1.1950 and 1.1930.