EUR/USD Daily Forecast – Another Test Of Resistance At 1.1900

Euro Tries To Continue Its Rebound

EUR/USD continues its attempts to settle above the resistance at 1.1900 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index is currently trying to settle above the resistance level which is located at 92. If the U.S. Dollar Index manages to settle above this level, it will get to the test of the resistance at 92.15 which will be bearish for EUR/USD.

Today, foreign exchange market traders will focus on the flash reading of Euro Area Consumer Confidence report for June. Analysts expect that Euro Area Consumer Confidence improved from -5.1 in May to -3 in June.

Traders will also take a look at Existing Home Sales report from the U.S. which is expected to show that Existing Home Sales declined by 1% month-over-month in May.

I’d note that Treasury yields are currently trying to continue their rebound, and the yield of 10-year Treasuries is testing the psychologically important 1.50% level. Higher yields may provide additional support to the U.S. dollar.

Technical Analysis

EUR/USD is currently trying to stay above the resistance level at 1.1900. In case this attempt is successful, EUR/USD will move towards the next resistance level at 1.1925. EUR/USD made an attempt to get to the test of this level during yesterday’s trading session but failed to develop sufficient upside momentum.

In case EUR/USD manages to settle above the resistance at 1.1925, it will head towards the next resistance level which is located at 1.1965. A move above this level will open the way to the test of the resistance at 1.1990.

On the support side, EUR/USD needs to settle back below 1.1900 to have a chance to develop downside momentum in the near term. The next support level is located at 1.1880. If EUR/USD declines below this level, it will head towards the support at 1.1860. A move below 1.1860 will push EUR/USD towards the support at 1.1830.

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