EUR/USD Daily Forecast – Support At 1.1690 In Sight

Euro Is Losing Ground At The Start Of The Week

EUR/USD is currently trying to get below 1.1700 while the U.S. dollar is moving higher a broad basket of currencies.

The U.S. Dollar Index is trying to get to the test of the nearest resistance level which is located at 93.40. A move above 93.40 will push the U.S. Dollar Index towards the resistance at 93.75 which will be bearish for EUR/USD.

Today, foreign exchange market traders will have a chance to take a look at Durable Goods Orders report from U.S. which is expected to show that Durable Goods Orders increased by 0.7% month-over-month in August.

Traders will also focus on general market sentiment. The U.S. dollar is trading near yearly highs, while Treasury yields are at multi-week high levels. Demand for the American currency is growing as traders prepare for the upcoming reduction of Fed’s asset purchase program which could be announced in early November. If Treasury yields gain additional upside momentum at the start of this week, U.S. dollar may get more support.

Technical Analysis

EUR/USD settled below the support at 1.1720 and is trying to get to the test of the next support level at 1.1690. In case EUR/USD manages to settle below the support at 1.1690, it will head towards the next support level which is located at 1.1660.

A successful test of the support at 1.1660 will open the way to the test of the next support at 1.1630. If EUR/USD settles below this level, it will continue its downside move and head towards the next support level which is located at 1.1610.

On the upside, the previous support level at 1.1720 will serve as the first resistance level for EUR/USD. A move above this level will push EUR/USD towards the next resistance which is located at the 20 EMA at 1.1750. In case EUR/USD gets above the 20 EMA, it will head towards the resistance at 1.1775.

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