EUR/USD Daily Forecast – Resistance At 1.1880 Stays Strong
Euro Is Mostly Flat Against U.S. Dollar
EUR/USD failed to settle above the resistance at 1.1880 and pulled back while the U.S. dollar gained some ground against a broad basket of currencies.
The U.S. Dollar Index is currently trying to get to the test of the nearest resistance level at 92.30. In case the U.S. Dollar Index manages to settle above this level, it will head towards the next resistance at the 50 EMA at 92.40 which will be bearish for EUR/USD.
Today, foreign exchange market traders will focus on the economic data from EU. Analysts expect that Euro Area ZEW Economic Sentiment Index declined from 42.7 in August to 30 in September due to the negative impact of the spread of the Delta variant of coronavirus.
The third estimate of the second-quarter Euro Area GDP Growth Rate report is expected to show that Euro Area GDP increased by 2% quarter-over-quarter. The final reading of the second-quarter Euro Area Employment Change report is projected to indicate that employment increased by 0.5% quarter-over-quarter.
Most likely, traders will focus on ZEW Economic Sentiment Index as it will provide timely information on the state of the European economy.
EUR/USD has recently made another attempt to settle above the resistance at 1.1880 but failed to develop sufficient upside momentum and pulled back. The nearest support level for EUR/USD is located at 1.1860.
In case EUR/USD declines below 1.1860, it will head towards the next support which is located near the 50 EMA at 1.1830. A move below the 50 EMA will open the way to the test of the 20 EMA near 1.1815. If EUR/USD gets below this level, it will head towards the next support at 1.1800.
On the upside, a move above 1.1880 will push EUR/USD towards the resistance at 1.1900. In case EUR/USD settles above this level, it will head towards the next resistance at 1.1925. A successful test of this level will open the way to the test of the resistance at 1.1945.
For a look at all of today’s economic events, check out our economic calendar.