EUR/USD Daily Forecast – Euro Is Mostly Flat Ahead Of Inflation Data

Euro Tries To Gain Some Ground Against U.S. Dollar

EUR/USD is currently trying to settle back above 1.1900 while the U.S. dollar is losing some ground against a broad basket of currencies.

The U.S. Dollar Index did not manage to settle above the resistance at 92.15 and declined towards the 92 level. In case the U.S. Dollar Index settles below 92, it will move towards the support at 91.80 which will be bullish for EUR/USD.

Today, foreign exchange market traders will focus on inflation data from EU. Euro Area Inflation Rate is forecast to grow by 0.4% month-over-month in June. On a year-over-year basis, Euro Area Inflation Rate is projected to increase by 1.9%. Core Inflation Rate is expected to grow by 0.9%.

In the U.S., ADP Employment Change report is projected to show that private businesses hired 600,000 workers in June. This report may have a material impact on currency dynamics as the Fed is focused on improving the situation in the job market. If the job market recovers faster than expected, the Fed will raise rates in 2022, which will be bullish for the U.S. dollar.

Technical Analysis

EUR/USD failed to settle below the support at 1.1880 and is trying to settle back above 1.1900. In case this attempt is successful, EUR/USD will move towards the resistance level at 1.1925.

A successful test of the resistance at 1.1925 will open the way to the test of the next resistance at 1.1965. In case EUR/USD manages to settle above 1.1965, it will head towards the next resistance level which is located at the 20 EMA at 1.1985.

On the support side, EUR/USD needs to get back below 1.1900 to have a chance to develop downside momentum in the near term. The next support level for EUR/USD is located at 1.1880.

If EUR/USD manages to settle below the support at 1.1880, it will move towards the support at 1.1860. A move below this level will open the way to the test of the support at 1.1830.

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