EUR/USD Daily Forecast – Euro Declines After Germany’s Industrial Production Report Misses Estimates
Euro Is Under Pressure Against U.S. Dollar
EUR/USD is currently testing the support level at 1.1830 while the U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index continues its attempts to settle above the resistance level which is located at the 20 EMA at 92.30. If the U.S. Dollar Index manages to get above this level, it will continue its upside move and head towards 92.50 which will be bearish for EUR/USD.
Germany has recently reported that Industrial Production declined by 1.3% month-over-month in June compared to analyst consensus which called for growth of 0.5%. This is a surprising report which may put additional pressure on the euro.
However, the biggest catalyst for EUR/USD today is the upcoming U.S. Non Farm Payrolls report which is projected to show that the U.S. economy added 870,000 jobs in July. It will be very interesting to see whether this report meets expectations after the weak ADP Employment Change report which was published on Wednesday. It should be noted that ADP Employment Change and Non Farm Payrolls reports often present different pictures. Meanwhile, U.S. Unemployment Rate is projected to decline from 5.9% in June to 5.7% in July.
EUR/USD managed to settle below the 20 EMA at 1.1840 and is trying to settle below the next support level at 1.1830. In case this attempt is successful, EUR/USD will move towards the support at 1.1800.
A move below 1.1800 will open the way to the test of the support at 1.1775. In case EUR/USD declines below the support at 1.1775, it will head towards the next support which is located at July lows at 1.1750. A successful test of this level will open the way to the test of the support at 1.1720.
On the upside, a move above 1.1830 will lead to a test of the 20 EMA at 1.1840. In case EUR/USD gets back above the 20 EMA, it will move towards the resistance at 1.1860. A successful test of this level will push EUR/USD towards the resistance at 1.1880.
For a look at all of today’s economic events, check out our economic calendar.