EUR/USD Daily Forecast – Euro Tries To Gain Ground Ahead Of The Weekend

Euro Moves Higher Against U.S. Dollar

EUR/USD is currently moving towards the resistance level at 1.1965 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index failed to settle above the resistance at 91.80 and declined towards 91.70. If the U.S. Dollar Index continues its downside move, it will head towards the recent lows near 91.50 which will be bullish for EUR/USD.

Today, foreign exchange market traders will focus on the economic data from U.S. Analysts expect that Personal Income declined by 2.5% month-over-month in May after decreasing by 13% in April. Personal Spending is projected to grow by 0.4%.

Traders will also take a look at the final reading of Consumer Confidence report for June which is projected to show that Consumer Confidence improved from 82.9 in May to 86.5 in June.

It remains to be seen whether EUR/USD will be able to gain momentum ahead of the weekend as the U.S. dollar continues to stabilize after the recent volatility, and traders may want to see more economic data before making big moves.

Technical Analysis

EUR/USD managed to settle above 1.1925 and is trying to get to the test of the next resistance level at 1.1965. In case EUR/USD gets above 1.1965, it will head towards the resistance at 1.1990.

A move above the resistance at 1.1990 will open the way to the test of the next resistance level which is located at the 20 EMA at 1.2020. In case EUR/USD gets above the 20 EMA, it will move towards the resistance at 1.2040.

On the support side, the previous resistance level at 1.1925 will serve as the first support level for EUR/USD. In case EUR/USD declines below the support at 1.1925, it will head towards the next support at 1.1900.

A successful test of the support at 1.1900 will open the way to the test of the next support at 1.1880. In case EUR/USD manages to get below 1.1880, it will move towards the support at 1.1860.

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