EUR/USD Daily Forecast – Euro Gains Ground Ahead Of PMI Reports

Euro Moves Higher Against U.S. Dollar

EUR/USD is currently trying to settle above 1.1720 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index is currently moving towards the support level at 93.10. In case the U.S. Dollar Index manages to get to the test of this level, EUR/USD will gain additional upside momentum.

Today, foreign exchange market traders will focus on PMI data from EU. Analysts expect that Euro Area Manufacturing PMI declined from 61.4 in August to 60.3 in September. Euro Area Services PMI is projected to decrease from 59 to 58.5.

In the U.S., traders will take a look at Initial Jobless Claims and Continuing Jobless Claims reports. Initial Jobless Claims report is expected to show that 320,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are expected to decline from 2.67 million to 2.65 million. U.S. Manufacturing PMI is expected to increase from 61.1 in August to 61.5 in September, while U.S. Services PMI is projected to decline from 55.1 to 55.

Technical Analysis

EUR/USD is testing the resistance level at 1.1720. In case this test is successful, EUR/USD will move towards the next resistance at 1.1750.

A successful test of the resistance at 1.1750 will open the way to the test of the next resistance level which is located at the 20 EMA at 1.1765. In case EUR/USD gets above the 20 EMA, it will head towards the resistance level at 1.1775.

On the support side, the nearest support level for EUR/USD is located at 1.1690. This support level has already been tested several times in recent trading sessions and proved its strength.

In case EUR/USD declines below this level, it will move towards the support at 1.1660. A successful test of the support at 1.1660 will push EUR/USD towards the next support level at 1.1630. If EUR/USD manages to settle below this level, it will move towards the support at 1.1615.

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