EUR/USD Daily Forecast – Support At 1.1830 Stays Strong

Euro Tries To Gain Ground Against U.S. Dollar

EUR/USD received support at 1.1830 and is trying to gain upside momentum while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle above the resistance at the 20 EMA at 92.60 but failed to develop sufficient upside momentum. In case the U.S. Dollar Index gets above this level, it will move towards 92.80 which will be bearish for EUR/USD.

Yesterday, EU released Euro Area ZEW Economic Sentiment Index report which indicated that economic stentiment declined from 42.7 in August to 31.1 in September compared to analyst forecast of 30.

The third estimate of the second-quarter Euro Area GDP Growth Rate report exceeded analyst expectations as Euro Area GDP increased by 2.2% quarter-over-quarter compared to analyst consensus which called for growth of 2%.

There are no important economic reports scheduled to be released in the EU today so foreign exchange market traders will likely stay in a waiting mode. On Thursday, traders will focus on ECB Interest Rate Decision and the subsequent commentary which may have a significant impact on EUR/USD dynamics.

Technical Analysis

EUR/USD failed to settle below the support level at 1.1830 and is trying to move closer to the nearest resistance level at 1.1860.

In case EUR/USD manages to settle above the resistance at 1.1860, it will move towards the next resistance level at 1.1880. A successful test of this level will open the way to the test of the resistance which is located at the recent highs at 1.1900.

On the support side, EUR/USD needs to settle below the support level at 1.1830 to have a chance to develop downside momentum in the near term. The 50 EMA is located in the nearby so EUR/USD may get strong support near this level. A move below the 50 EMA will push EUR/USD towards the 20 EMA near 1.1815. If EUR/USD declines below this level, it will head towards the support at 1.1800.

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