EUR/USD Daily Forecast – Support At 1.1750 Stays Strong

Euro Is Mostly Flat Against U.S. Dollar

EUR/USD is currently trying to settle back above 1.1750 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index did not manage to settle above the resistance at 92.80 but remains close to this level. A move above 92.80 will open the way to the test of 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 U.S. Consumer Inflation Expectations report for July. Analysts expect that Consumer Inflation Expectations declined from 4.8% in June to 4.7% in July.

Consumer Inflation Expectations are closely watched by the Fed which makes the report important in the current environment. In case Consumer Inflation Expectations exceed analyst forecasts, U.S. dollar may get more support.

Technical Analysis

EUR/USD has recently made an attempt to settle below the support at 1.1750 but failed to develop sufficient downside momentum. However, EUR/USD remains close to this important level.

Back in July, EUR/USD made several attempts to settle below the support at 1.1750 but these attempts yielded no results. In case EUR/USD manages to settle below 1.1750, it will gain additional downside momentum and head towards the next support level at 1.1720. RSI is in the moderate territory despite the recent sell-off so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

A move below the support at 1.1720 will push EUR/USD towards the support at 1.1690. In case EUR/USD declines below 1.1690, it will head towards the next support level which is located at 1.1660.

On the upside, the nearest resistance level for EUR/USD is located at 1.1775. If EUR/USD manages to settle back above this level, it will head towards the next resistance at 1.1800. A successful test of the resistance at 1.1800 will push EUR/USD towards the next resistance which is located at the 20 EMA at 1.1820.

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