EUR/USD Daily Forecast – Euro Tries To Rebound After Strong Sell-Off

Euro Gains Ground Against U.S. Dollar

EUR/USD is currently trying to settle back above 1.1370 while the U.S. dollar is losing some ground against a broad basket of currencies.

The U.S. Dollar Index is currently stuck in the 95.40 – 95.50 range. In case the U.S. Dollar Index declines below 95.40, it will move towards the next support level at 95.20 which will be bullish for EUR/USD.

Today, foreign exchange market traders will take a look at the third-quarter Euro Area GDP Growth Rate report. The report is projected to show that Euro Area GDP grew by 2.2% quarter-over-quarter. Euro Area Employment Change report is projected to indicate that employment increased by 0.8% in the third quarter.

In the U.S., traders will focus on Retail Sales report for October. Analysts expect that Retail Sales increased by 1.2% month-over-month after growing by 0.7% in September. On a year-over-year basis, Retail Sales are projected to grow by 12%.

U.S. Industrial Production is expected to grow by 0.7% month-over-month in October while Manufacturing Production is also expected to increase by 0.7%.

The market will likely focus on U.S. Retail Sales report as it will show whether consumers’ worries about inflation have already put pressure on Retail Sales.

Technical Analysis

EUR/USD is testing the resistance level at 1.1370. In case this test is successful, EUR/USD will move towards the next resistance level which is located at 1.1400.

If EUR/USD manages to settle above the resistance at 1.1400, it will continue its rebound and head towards the next resistance at 1.1425. A successful test of this level will open the way to the test of the resistance at 1.1450.

On the support side, the nearest support level for EUR/USD is located at 1.1350. In case EUR/USD manages to settle below this support level, it will head towards the next support at 1.1325. A move below 1.1325 will push EUR/USD towards the support which is located at 1.1300.

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