EUR/USD Daily Forecast – Resistance At 1.1860 In Sight

Euro Moves Higher Against U.S. Dollar

EUR/USD managed to get above the resistance at 1.1830 and is moving towards the next resistance at 1.1860 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index remains stuck near the support level at the 20 EMA at 92.45. In case the U.S. Dollar Index declines below this level, it will move towards 92.30 which will be bullish for EUR/USD.

Today, foreign exchange market traders will have a chance to take a look at Producer Prices data from EU. Analysts expect that Euro Area Producer Prices increased by 1.1% month-over-month in July. On a year-over-year basis, Producer Prices are projected to decrease by 11%.

Traders will also focus on Initial Jobless Claims and Continuing Jobless Claims reports from U.S. Initial Jobless Claims are projected to decline from 345,000 to 353,000 while Continuing Jobless Claims are expected to decrease from 2.86 million to 2.78 million.

Technical Analysis

EUR/USD is currently trying to get to the test of the resistance at 1.1860. In case EUR/USD manages to get above this level, it will move towards the next resistance at 1.1880. RSI is moving closer to the overbought territory, but there is enough room to gain additional upside momentum in case the right catalysts emerge.

A move above the resistance level at 1.1880 will push EUR/USD towards the next resistance which is located at August highs at 1.1900. If EUR/USD settles above the resistance at 1.1900, it will head towards the next resistance at 1.1925.

On the support side, the previous resistance level at 1.1830 will serve as the first support level for EUR/USD. A move below this level will open the way to the test of the support at the 50 EMA at 1.1815.

In case EUR/USD settles back belwo the 50 EMA, it will head towards the support at 1.1800. A successful test of this support level will push EUR/USD towards the next support which is located at the 20 EMA at 1.1785.

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