EUR/USD Daily Forecast – Support At 1.1925 Stays Strong

Euro Moves Higher Against U.S. Dollar

EUR/USD received support near 1.1925 and is moving towards the resistance at 1.1965 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get below 91.80 and is trying to develop additional downside momentum. In case this attempt is successful, the U.S. Dollar Index will move towards the recent lows near 91.50 which will be bullish for EUR/USD.

U.S. and EU will not release any important economic reports today so foreign exchange market traders will stay focused on inflation expectations and potential rate hikes from the Fed.

At this point, it looks that Fed Chair Jerome Powell has successfully managed to calm markets after several Fed officials indicated that the Fed may have to raise rates by the end of 2022.

From a big picture point of view, the U.S. dollar is stabilizing after the recent upside move against a broad basket of currencies. This week, U.S. will release employment reports, including Non Farm Payrolls, so trading activity will likely increase when traders have a chance to take a look at the new data.

Technical Analysis

EUR/USD is currently trying to get to the test of the resistance which is located at 1.1965. This resistance level has already been tested several times in recent trading sessions and proved its strength.

In case EUR/USD gets above 1.1965, it will move towards the next resistance level at 1.1990. A successful test of this level will push EUR/USD towards the next resistance at the 20 EMA at 1.2005. If EUR/USD manages to settle above the 20 EMA, it will move towards the resistance at 1.2020.

On the support side, the nearest support level for EUR/USD is located at 1.1925. A successful test of the support at 1.1925 will open the way to the test of the next support at 1.1900.

In case EUR/USD gets below the support at 1.1900, it will move towards the next support at 1.1880. A move below this level will push EUR/USD towards the support at 1.1860.

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