EUR/USD Daily Forecast – Euro Moves Higher Ahead Of ECB Interest Rate Decision

Euro Gains Some Ground Against U.S. Dollar

EUR/USD is currently trying to settle above the 50 EMA near 1.1825 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index is stuck between the support at the 20 EMA at 92.60 and the resistance at 92.80. If the U.S. Dollar Index gets above the resistance at 92.80, it will gain additional upside momentum and head towards the next resistance level at 93.10 which will be bearish for EUR/USD.

Today, foreign exchange market traders will focus on the ECB Interest Rate Decision and the subsequent commentary. The key question is whether ECB is worried about inflation. If ECB is less dovish than expected, euro may get additional support.

In the U.S., traders will focus on the latest job market data. Initial Jobless Claims are projected to decline from 340,000 to 335,000 while Continuing Jobless Claims are expected to decrease from 2.75 million to 2.74 million.

Technical Analysis

EUR/USD did not manage to settle below the support at the 20 EMA at 1.1815 and is trying to get above the 50 EMA near 1.1825. In case this attempt is successful, it will get to the test of the resistance level at 1.1830.

A move above the resistance at 1.1830 will push EUR/USD towards the next resistance at 1.1860. If EUR/USD gets above this level, it will head towards the resistance at 1.1880. In case EUR/USD manages to settle above 1.1880, it will head towards the next resistance at 1.1900.

On the support side, EUR/USD needs to settle below the 20 EMA at 1.1815 to have a chance to develop downside momentum in the near term. The next support level for EUR/USD is located at 1.1800.

A successful test of the support at 1.1800 will open the way to the test of the support at 1.1775. In case EUR/USD declines below this level, it will move towards the next support level which is located at 1.1750.

For a look at all of today’s economic events, check out our economic calendar.