EUR/USD Daily Forecast – Another Test Of Resistance At 1.1880

Euro Moves Higher Against U.S. Dollar At The Start Of The Week

EUR/USD is currently trying to settle above the resistance at 1.1880 while the U.S. dollar is losing some ground against a broad basket of currencies.

The U.S. Dollar Index did not manage to settle above the resistance at 92.15 and pulled back towards the support at the 92 level. In case the U.S. Dollar Index manages to settle below this level, it will move towards the next support at the 50 EMA at 91.90 which will be bullish for EUR/USD.

Germany has recently reported that Retail Sales increased by 4.2% month-over-month in June compared to analyst consensus which called for growth of 2%. On a year-over-year basis, Germany’s Retail Sales grew by 6.2%. Strong Retail Sales report from Europe’s leading economy provided some additional support to euro.

Today, foreign exchange market traders will also have a chance to take a look at the final reading of Euro Area Manufacturing PMI report which is projected to show that Euro Area Manufacturing PMI decreased from 63.4 in June to 62.6 in July.

Technical Analysis

EUR/USD continues its attempts to settle above the resistance level at 1.1880. In case EUR/USD settles above this level, it will get to the test of the resistance level which is located at the 50 EMA at 1.1900.

If EUR/USD manages to settle above the 50 EMA at 1.1900, it will head towards the resistance at 1.1925. A move above this level will open the way to the test of the resistance at 1.1945. In case EUR/USD gets above 1.1945, it will head towards the resistance at 1.1965.

On the support side, the nearest support level for EUR/USD is located at 1.1860. A successful test of this level will push EUR/USD towards the support at the 20 EMA at 1.1845.

In case EUR/USD gets below the 20 EMA, it will move towards the support at 1.1830. A move below this level will open the way to the test of the support at 1.1800.

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