EUR/USD Daily Forecast – Test Of Resistance At 1.1775

Euro Tries To Continue Its Rebound

EUR/USD continues its attempts to settle above the resistance level at 1.1775 while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index failed to settle below the support at the 20 EMA at 92.85 and is moving towards the 93 level. A move above this level will open the way to the test of the next resistance at 93.10 which will be bearish for EUR/USD.

Germany has recently released Consumer Confidence report for September which indicated that Consumer Confidence declined from -0.4 (revised from -0.3) to -1.2 compared to analyst consensus of -0.7. It looks that worries about the spread of the Delta variant of coronavirus have put additional pressure on consumer sentiment.

In the U.S., foreign exchange market traders will focus on the latest job market reports which are especially interesting as they are released during the Jackson Hole Symposium. Analysts expect that Initial Jobless Claims increased from 348,000 to 350,000 while Continuing Jobless Claims declined from 2.82 million to 2.79 million.

Technical Analysis

EUR/USD managed to get above the 20 EMA at 1.1760 and is trying to settle above the next resistance level which is located at 1.1775. This resistance level has already been tested several times and proved its strength.

In case EUR/USD settles above 1.1775, it will continue its rebound and head towards the next resistance level at 1.1800. A move above the resistance at 1.1800 will open the way to the test of the next resistance which is located at the 50 EMA at 1.1815. If EUR/USD manages to settle above the 50 EMA, it will head towards the next resistance level at 1.1830.

On the support side, the 20 EMA at 1.1760 should serve as the first support level for EUR/USD. A move below this level will lead to the test of the next support level which is located at 1.1750. In case EUR/USD declines below 1.1750, it will head towards the support at 1.1720.

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