EUR/USD Daily Forecast – Euro Attempts To Gain More Ground Against U.S. Dollar

U.S. Dollar Is Losing Ground Against Euro

EUR/USD is currently trying to settle above the resistance at 1.1925 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index did not manage to settle above the nearest resistance level at 91.80 and is trying to gain downside momentum. In case this attempt is successful, it will move closer to recent lows near 91.50 which will be bullish for EUR/USD.

Today, foreign exchange market traders will focus on the economic data from U.S. The final reading of the first-quarter GDP Growth Rate report is expected to show that GDP increased by 6.4% on a quarter-over-quarter basis.

Analysts expect that Durable Goods Orders increased by 2.8% month-over-month In May.

As usual, traders will pay attention to the latest job market data. Initial Jobless Claims report is expected to show that 380,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are projected to decline from 3.52 million to 3.47 million.

Technical Analysis

EUR/USD continues its attempts to settle above the nearest resistance level at 1.1925. RSI is in the moderate territory so there is plenty of room to gain upside momentum in case the right catalysts emerge.

If EUR/USD manages to settle above 1.1925, it will head towards the next resistance level at 1.1965. A successful test of this level will push EUR/USD towards the resistance at 1.1990. In case EUR/USD gets above the resistance at 1.1990, it will head towards the next resistance level which is located near the 20 EMA at 1.2020.

On the support side, EUR/USD needs to settle below 1.1925 to have a chance to develop downside momentum in the near term. If EUR/USD settles below this level, it will move towards the support at 1.1900.

A move below the support at 1.1900 will open the way to the test of the next support level at 1.1880. In case EUR/USD manages to settle below 1.1880, it will head towards the support at 1.1860.

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