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

Euro Gains Some Ground Against U.S. Dollar

EUR/USD is currently trying to settle back above 1.1580 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index remains stuck near 94.30. The nearest support level for the U.S. Dollar Index is located at 94.20. In case U.S. Dollar Index manages to settle below this level, it will gain additional downside momentum which will be bullish for EUR/USD.

Today, foreign exchange market traders will have a chance to take a look at preliminary Euro Area inflation data for September. Analysts expect that Euro Area Inflation Rate grew by 0.2% month-over-month in September. On a year-over-year basis, Inflation Rate is projected to increase by 3.3%. Core Inflation Rate is projected to grow by 1.9% year-over-year.

EU will also release the final reading of Euro Area Manufacturing PMI report for September which is projected to show that Manufacturing PMI declined from 61.4 to 58.7.

Technical Analysis

EUR/USD received support near 1.1560 and is trying to settle back above 1.1580. RSI is in the oversold territory, and EUR/USD has a good chance to develop some upside momentum after the major sell-off.

In case EUR/USD manages to settle above 1.1580, it will head towards the next resistance level which is located at 1.1610. A successful test of the resistance at 1.1610 will open the way to the test of the next resistance at 1.1630. In case EUR/USD gets above 1.1630, it will head towards the resistance at 1.1660.

On the support side, EUR/USD needs to get back below 1.1580 to have a chance to develop additional downside momentum in the near term. If EUR/USD declines below the support at 1.1580, it will move towards the next support level which has recently emerged near 1.1560.

A move below the support at 1.1560 will open the way to the test of the next support level which is located at 1.1540. In case EUR/USD declines below this level, it will head towards the next support at 1.1510.

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