EUR/USD Daily Forecast – Euro Tries To Continue Its Rebound

U.S. Dollar Is Flat Against Euro

EUR/USD is currently testing the resistance at 1.1830 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index declined below the support at 92.40 and made an attempt to gain additional downside momentum. The next support level for the U.S. Dollar Index is located at 92.15. In case the U.S. Dollar Index manages to get to the test of this level, EUR/USD will get more support.

There are no important economic reports scheduled to be released in the EU today, so foreign exchange market traders will focus on the economic data from U.S.

Analysts expect that Initial Jobless Claims decreased from 373,000 to 360,000 while Continuing Jobless Claims declined from 3.34 million to 3.31 million.

Yesterday, Fed Chair Jerome Powell reiterated his dovish message and indicated that he was not worried about inflation. The Fed remains focused on the health of the job market. In this light, positive job market reports may be interpreted as signals for tighter policy, but it remains to be seen whether the market will be very sensitive to job market data.

Technical Analysis

EUR/USD is currently trying to settle above the nearest resistance level at 1.1830. In case this attempt is successful, EUR/USD will move towards the next resistance which is located at 1.1860.

A successful test of this resistance will push EUR/USD towards the resistance at the 20 EMA at 1.1880. If EUR/USD manages to settle above the 20 EMA at 1.1880, it will head towards the next resistance at 1.1900.

On the support side, a move below 1.1830 will open the way to the test of the support at 1.1800. If EUR/USD declines below the support at 1.1800, it will move towards the next support level which is located near the recent lows at 1.1775. A successful test of the support at 1.1775 will open the way to the test of the next support level at 1.1750.

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