EUR/USD Daily Forecast – Support At 1.1720 In Sight

Euro Remains Under Pressure Against U.S. Dollar

EUR/USD managed to get below the important support level at 1.1750 and tries to continue its downside move while the U.S. dollar is flat against a broad basket or currencies.

The U.S. Dollar Index continues its attempts to get above the 93 level. A move above this level will push the U.S. Dollar Index towards the resistance at 93.10 which will be bearish for EUR/USD.

Today, foreign exchange market traders will have a chance to take a look at Euro Area ZEW Economic Sentiment Index for August. Analysts expect that Euro Area ZEW Economic Sentiment Index declined from 61.2 in July to 45.6 in August.

Traders will also focus on Germany’s ZEW Economic Sentiment Index. Analysts expect that the situation in Europe’s leading economy is better than in the Euro Area in general, but Germany’s ZEW Economic Sentiment Index is still projected to decrease from 63.3 in July to 56.7 in August.

Technical Analysis

EUR/USD declined below the support level at 1.1750 and is moving towards the next support level which is located at 1.1720. RSI remains in the moderate territory despite the recent downside move, so there is plenty of room to gain additional downside momentum.

In case EUR/USD manages to settle below 1.1720, it will head towards the next support at 1.1690. A successful test of the support at 1.1690 will open the way to the test of the support at 1.1660. If EUR/USD declines below the support at 1.1660, it will head towards the next support level which is located near the lows seen back in November 2020 at 1.1625.

On the upside, the previous support level at 1.1750 will serve as the first resistance level for EUR/USD. A move above this level will push EUR/USD towards the resistance at 1.1775. In case EUR/USD gets above 1.1775, it will head towards the resistance at 1.1800. A successful test of this level will lead to the test of the next resistance which is located at the 20 EMA at 1.1810.

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