EUR/USD Daily Forecast – Euro Is Under Pressure At The Start Of The Week
U.S. Dollar Gains Ground Against Euro
EUR/USD is currently trying to settle below the support at 1.1775 while the U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index is testing the resistance level at 92.80. In case the U.S. Dollar Index manages to settle above this level, it will move towards the resistance at 93.10 which will be bearish for EUR/USD.
Today, foreign exchange market traders will have a chance to take a look at U.S. Consumer Inflation Expectations report which is projected to show that Consumer Inflation Expectations grew from 4.8% in July to 4.9% in August.
However, many traders would prefer to wait for Inflation Rate and Core Inflation Rate reports which will be published on Tuesday. Analysts expect that Inflation Rate grew by 0.4% month-over-month in August. On a year-over-year basis, Inflation Rate is expected to increase by 5.3%. Core Inflation Rate is projected to grow by 4.2%.
EUR/USD managed to settle below the support level at 1.1800 and is trying to get below the next support level at 1.1775. In case this attempt is successful, EUR/USD will move towards the support at 1.1750. RSI remains in the moderate territory, and there is plenty of room to gain downside momentum in case the right catalysts emerge.
A move below the support at 1.1750 will open the way to the test of the support at 1.1720. In case EUR/USD declines below this level, it will head towards the next support at 1.1690.
On the upside, the previous support at 1.1800 will serve as the first resistance level for EUR/USD. A move above this level will lead to the test of the resistance at the 20 EMA at 1.1810.
In case EUR/USD manages to get above 1.1810, it will get to the test of the resistance at the 50 EMA at 1.1820. If EUR/USD moves above the 50 EMA, it will head towards the next resistance level at 1.1830.
For a look at all of today’s economic events, check out our economic calendar.