EUR/USD Daily Forecast – Euro Retreats At The Start Of The Week

U.S. Dollar Is Gaining Ground Against Euro

EUR/USD is currently trying to settle below the support at 1.1860 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index received support at 92.15 and is trying to settle above 92.20. In case this attempt is successful, the U.S. Dollar Index will move towards the resistance at 92.40 which will be bearish for EUR/USD.

No important economic reports will be released in the U.S. and EU today, and foreign exchange market traders will have to wait until Tuesday to take a look at important U.S. inflation data.

Analysts expect that Inflation Rate increased by 0.5% month-over-month in June. On a year-over-year basis, Inflation Rate is projected to grow by 4.9%. Core Inflation Rate is expected to increase by 4%.

The U.S. dollar may be very volatile after the release of inflation reports. If prices are rising faster than expected, the U.S. dollar may get more support as the Fed will have to raise rates in 2022.

Technical Analysis

EUR/USD faced resistance at 1.1880 and is testing the support at 1.1860. In case EUR/USD manages to settle below this level, it will head towards the next support at 1.1830. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

If EUR/USD declines below 1.1830, it will head towards the support at 1.1800. If EUR/USD settles below the support at 1.1800, it will move towards the next support level which is located near the recent lows at 1.1775.

On the upside, the nearest resistance level for EUR/USD is located at 1.1880. A successful test of this level will open the way to the test of the next resistance at the 20 EMA at 1.1900.

If EUR/USD gets above the 20 EMA, it will move towards the resistance at 1.1925. A move above this level will open the way to the test of the resistance at 1.1965.

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