EUR/USD Daily Forecast – Resistance At 1.1750 Stays Strong
U.S. Dollar Tries To Rebound Against Euro
EUR/USD faced resistance at 1.1750 and pulled back while the U.S. dollar gained some ground against a broad basket of currencies.
The U.S. Dollar Index has recently managed to get back above the resistance at 93.10 and is trying to develop additional upside momentum. In case this attempt is successful, it will head towards the next resistance at 93.40 which will be bearish for EUR/USD.
Today, foreign exchange market traders will focus on Ifo Business Climate report from Germany. The report is expected to show that Business Climate declined from 99.4 in August to 98.9 in September. In the U.S., New Home Sales are projected to increase by 0.5% month-over-month in August.
It should be noted that Treasury yields have moved to multi-week highs, which may provide additional support to the U.S. dollar, although it remains to be seen whether traders are ready for big moves ahead of the weekend.
EUR/USD has recently made another attempt to settle above the resistance level at 1.1750 but failed to develop sufficient upside momentum and pulled back. This resistance level has already been tested many times in recent trading sessions and proved its strength.
In case EUR/USD manages to settle above 1.1750, it will gain additional upside momentum and get to the test of the next resistance level which is located at the 20 EMA at 1.1765. A successful test of the resistance at the 20 EMA at 1.1765 will open the way to the test of the next resistance level at 1.1775. If EUR/USD gets above this level, it will move towards the resistance at the 50 EMA at 1.1795.
On the support side, the nearest support level for EUR/USD is located at 1.1720. If EUR/USD declines below this level, it will move towards the support at 1.1690. A move below this level will push EUR/USD towards the support at 1.1660. In case EUR/USD manages to settle below the support at 1.1660, it will head towards 1.1630.
For a look at all of today’s economic events, check out our economic calendar.