EUR/USD Daily Forecast – Test Of Resistance At 1.1610

Euro Attempts To Rebound Against U.S. Dollar

EUR/USD is currently trying to settle back above the resistance level at 1.1610 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index faced resistance near 94.40 and pulled back towards 94.30. In case the U.S. Dollar Index declines below 94.30, it will move towards the support level at 94.20 which will be bullish for EUR/USD.

Today, foreign exchange market traders will have a chance to take a look at Euro Area Unemployment Rate report for August. The report is expected to show that Euro Area Unemployment Rate declined from 7.6% in July to 7.5% in August.

In the U.S., traders will focus on Initial Jobless Claims and Continuing Jobless Claims reports. Initial Jobless Claims report is projected to show that 335,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are expected to decline from 2.85 million to 2.8 million.

U.S. will also release the final reading of the second-quarter GDP Growth Rate report. Analysts expect that GDP increased by 6.6% on a quarter-over-quarter basis.

Technical Analysis

EUR/USD did not manage to get below the support at 1.1580 and is currently trying to settle above the nearest resistance level at 1.1610. In case this attempt is successful, EUR/USD will head towards the next resistance level which is located at 1.1630.

A successful test of the resistance at 1.1630 will open the way to the test of the next resistance at 1.1660. If EUR/USD settles above this level, it will head towards the resistance level at 1.1690.

On the support side, EUR/USD needs to get below the support at 1.1580 to continue its downside move. In case EUR/USD manages to settle below this level, it will gain additional downside momentum and head towards the next support level which is located at 1.1540. A move below the support at 1.1540 will push EUR/USD towards the next support level at 1.1510.

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