EUR/USD Daily Forecast – Resistance At 1.1750 In Sight

Euro Tries To Gain More Ground Against U.S. Dollar

EUR/USD is currently trying to settle back above 1.1750 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index continues its attempts to settle below the 93 level. In case the U.S. Dollar Index manages to settle below 93, it will get to the test of the support level at the 20 EMA at 92.85 which will be bullish for EUR/USD.

Yesterday, EU reported that Euro Area Manufacturing PMI declined from 62.8 in July to 61.5 in August compared to analyst consensus of 62. Euro Area Services PMI decreased from 59.8 to 59.7 compared to analyst consensus of 59.8.

Traders also had a chance to take a look at the flash reading of Euro Area Consumer Confidence report for August which indicated that Consumer Confidence declined from -4.4 in July to -5.3 in August compared to analyst consensus of -5.

Today, foreign exchange market traders will likely focus on the dynamics of U.S. government bond markets which may become more active ahead of the Jackson Hole symposium. Currently, the yield of 10-year Treasuries is trying to settle above the 20 EMA near 1.28%. In case this attempt is successful, it will head towards the 1.30% level which may provide support to the American currency.

Technical Analysis

EUR/USD managed to settle above the resistance at 1.1720 and is testing the next resistance level which is located near the 20 EMA at 1.1750. In case this test is successful, EUR/USD will move towards the resistance level at 1.1775.

A move above 1.1775 will open the way to the test of the resistance at 1.1800. If EUR/USD gets above 1.1800, it will head towards the resistance at the 50 EMA near 1.1815. A successful test of this level will open the way to the test of the resistance at 1.1830.

On the support side, the previous resistance at 1.1720 will serve as the first support level for EUR/USD. A move below this level will push EUR/USD towards the support at 1.1690. In case EUR/USD declines below 1.1690, it will head towards the support at 1.1660.

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