EUR/USD Daily Forecast – Euro Is Losing Ground At The Start Of The Week

Euro Is Under Pressure Against U.S. Dollar

EUR/USD continues its attempts to settle below the support at 1.1800 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index is testing the resistance at 92.80. If the U.S. Dollar Index manages to get above this level, it will move towards the resistance at 93.10 which will be bearish for EUR/USD.

On Friday, EU reported that Inflation Rate grew by 1.9% year-over-year in June while Core Inflation Rate increased by 0.9%. Both reports were in line with analyst estimates.

Today, foreign exchange market traders will focus on general market sentiment as there are no important economic reports scheduled to be released in U.S. and EU.

It should be noted that the main event of the week for EUR/USD traders is the ECB Interest Rate Decision on July 22. The interest rate will stay unchanged, and traders will focus on ECB commentary. The recent inflation reports indicated that inflation remained under control so ECB will likely remain very dovish.

Technical Analysis

EUR/USD is currently trying to settle below the support at 1.1800. In case EUR/USD manages to settle below this level, it will move towards the support level which is located at the recent lows at 1.1775.

A successful test of the support at 1.1775 will push EUR/USD towards the next support at 1.1750. If EUR/USD declines below 1.1750, it will head towards the support at 1.1720. A move below the support at 1.1720 will open the way to the test of the next support level which is located at 1.1690.

On the upside, the nearest resistance level for EUR/USD is located at 1.1830. If EUR/USD gets above this level, it will move towards the next resistance at the 20 EMA at 1.1860. In case EUR/USD manages to settle above the resistance at 1.1860, it will gain additional upside momentum and head towards the resistance at 1.1880.

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