EUR/USD Daily Forecast – Euro Retreats After Yesterday’s Upside Move

U.S. Dollar Gains Ground Against Euro

EUR/USD is currently trying to settle back below 1.1775 while U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index is slowly moving towards the resistance level at 92.80. In case the U.S. Dollar Index gets above this level, it will head towards the resistance at 93.10 which will be bearish for EUR/USD.

There are no important economic reports scheduled to be released in EU today so foreign exchange market traders will focus on economic data from U.S. where Durable Goods Orders report is expected to show that Durable Goods Orders increased by 2.1% month-over-month in June.

Case-Shiller Home Price Index report is projected to show that housing prices continued to move higher, growing by 16.4% year-over-year in May.

I’d note that trading will likely remain choppy as traders wait for Fed Interest Rate Decision which will be released on Wednesday. EUR/USD has been trading between the support at 1.1750 and the resistance at 1.1830 in recent trading sessions, and it will need significant catalysts to get out of this range ahead of the Fed decision.

Technical Analysis

EUR/USD declined below 1.1800 and is trying to settle below the support at 1.1775. RSI is in the moderate territory, and there is plenty of room to gain downside momentum in case the right catalysts emerge.

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

On the upside, the previous support at 1.1800 will serve as the first resistance level for EUR/USD. A successful test of this level will push EUR/USD towards the 20 EMA which is located at 1.1820. In case EUR/USD settles above the 20 EMA at 1.1820, it will get to the test of the next resistance level at 1.1830.

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