EUR/USD Daily Forecast – Euro Stays Strong Ahead Of Euro Area Inflation Reports
U.S. Dollar Moves Lower Against Euro
EUR/USD is currently trying to settle above the resistance at 1.1830 while the U.S. dollar is moving lower against a broad basket of currencies.
The U.S. Dollar Index has recently managed to get below 92.60 and is trying to settle below the support level at the 50 EMA at 92.45. A move below this level will open the way to the test of the support at 92.30 which will be bullish for EUR/USD.
Yesterday, EU reported that Euro Area Consumer Confidence declined from -4.4 In July to -5.3 in August, in line with the analyst consensus. Euro Area Industrial Sentiment decreased from 14.5 (revised from 14.6) in May to 13.7 in August compared to analyst consensus of 13.4, while Euro Area Services Sentiment decreased from 18.9 (revised from 19.3) to 16.8 compared to analyst consensus of 18.8.
Today, foreign exchange market traders will have a chance to take a look at Euro Area inflation data for August. Analysts expect that Euro Area Inflation Rate grew by 2.7% on a year-over-year baiss. Euro Area Core Inflation Rate is projected to increase by 1.5% year-over-year.
EUR/USD managed to get above the 50 EMA at 1.1815 and is testing the next resistance level which is located at 1.1830. In case EUR/USD manages to settle above this level, it will head towards the next resistance at 1.1860.
A successful test of the resistance level at 1.1860 will push EUR/USD towards the next resistance at 1.1880. If EUR/USD gets above this level, it will head towards the next resistance which is located at August highs at 1.1900.
On the support side, the previous resistance level at the 50 EMA will serve as the first support level for EUR/USD. If EUR/USD gets back below the 50 EMA, it will move towards the support at 1.1800.
A move below the support at 1.1800 will open the way to the test of the support which is located near the 20 EMA at 1.1775. In case EUR/USD declines below the 20 EMA, it will head towards the support level at 1.1750.
For a look at all of today’s economic events, check out our economic calendar.