EUR/USD Daily Forecast – Euro Attempts To Rebound Against U.S. Dollar
U.S. Dollar Is Losing Some Ground Against Euro
EUR/USD is currently trying to settle back above the 20 EMA at 1.1845 while the U.S. dollar is mostly flat against a broad basket of currencies.
The U.S. Dollar Index continues to test the nearest resistance level which is located at 92.30. In case the U.S. Dollar Index fails to settle above 92.30, it will move towards the support at 92.15 which will be bullish for EUR/USD.
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Yesterday, EU reported that Euro Area Services PMI increased from 58.3 in June to 59.8 in July compared to analyst consensus of 60.4. Euro Area Retail Sales grew by 1.5% month-over-month in June compared to analyst consensus which called for growth of 1.7%. Both reports failed to beat analyst expectations, and it looks that European economy is not recovering as fast as expected.
Today, foreign exchange market traders will focus on job market data from U.S. Initial Jobless Claims are expected to decline from 400,000 to 384,000 while Continuing Jobless Claims are projected to decrease from 3.27 million to 3.26 million. It remains to be seen whether these reports will have a material impact on currency dynamics as some traders may prefer to wait for the release of Non Farm Payrolls and Unemployment Rate reports which will be published on Friday.
Technical Analysis
EUR/USD received support at 1.1830 and is trying to get back above the 20 EMA at 1.1845. In case this attempt is successful, EUR/USD will move towards the next resistance level which is located at 1.1860.
A successful test of the resistance at 1.1860 will push EUR/USD towards the next resistance level at 1.1880. If EUR/USD manages to settle above this level, it will get to the test of the 50 EMA which is located near 1.1890.
On the support side, EUR/USD needs to settle below 1.1830 to gain additional downside momentum. The next support level for EUR/USD is located at 1.1800. If EUR/USD declines below this level, it will head towards the support at 1.1775. A move below 1.1775 will open the way to the test of the support at 1.1750.
For a look at all of today’s economic events, check out our economic calendar.