EUR/USD Daily Forecast – Euro Tries To Gain More Ground Against U.S. Dollar

U.S. Dollar Is Moving Lower Against Euro

EUR/USD continues its attempts to settle above the resistance at 1.1880 while the U.S. dollar is under pressure against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get below the support at the 92 level and is heading towards the next support at the 50 EMA near 91.90. In case the U.S. Dollar Index declines below this level, it will move towards the support at 91.80 which will be bullish for EUR/USD.

Today, foreign exchange market traders will focus on the economic data from EU. Analysts expect that Euro Area Services PMI increased from 58.3 in June to 60.4 in July as the services segment continued to recover. Euro Area Retail Sales are projected to grow by 1.7% month-over-month in June after growing by 4.6% in May. On a year-over-year basis, Retail Sales are expected to grow by 4.5%.

In the U.S., traders will focus on ADP Employment Change report which is expected to show that private businesses added 695,000 jobs in July. The Fed has recently reiterated that the health of the job market remained its top priority, so ADP Employment Change data may have a material impact on currency dynamics.

Technical Analysis

EUR/USD is still trying to settle above the nearest resistance level at 1.1880. If this attempt is successful, EUR/USD will get to another test of the next resistance level which is located at the 50 EMA at 1.1895.

A successful test of the resistance at the 50 EMA will push EUR/USD towards the resistance at 1.1925. If EUR/USD gets above this level, it will head towards the resistance at 1.1945. A move above 1.1945 will open the way to the test of the resistance at 1.1965.

On the support side, EUR/USD needs to settle below 1.1860 to have a chance to get to the test of the important support level at the 20 EMA at 1.1850. In case EUR/USD settles below the 20 EMA, it will gain additional downside momentum and move towards the support at 1.1830.

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