EUR/USD Daily Forecast – Test Of Resistance At 1.1810

Euro Tries To Gain More Ground Against U.S. Dollar

EUR/USD is currently trying to settle above 1.1810 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle below 90.60 but failed to develop sufficient downside momentum and rebounded towards 92.70. The nearest material resistance level for the U.S. Dollar Index is located at the 20 EMA at 92.80. In case the U.S. Dollar Index manages to get to the test of this level, EUR/USD will find itself under pressure.

Today, foreign exchange market traders will focus on economic data from EU. Analysts expect that the final reading of Euro Area Consumer Confidence report for August will indicate that Consumer Confidence declined from -4.4 to -5.3.

Euro Area Industrial Sentiment is projected to decrease from 14.6 in July to 13.4 in August, while Euro Area Services Sentiment is expected to decline from 19.3 to 18.8.

In the U.S., Pending Home Sales report is projected to show that Pending Home Sales increased by 0.4% month-over-month in July.

Technical Analysis

EUR/USD has recently made an attempt to settle above the resistance level which is located at the 50 EMA at 1.1810 but failed to develop sufficient upside momentum.

In case EUR/USD manages to settle above the 50 EMA, it will head towards the next resistance level at 1.1830. RSI remains in the moderate territory, and there is plenty of room to gain upside momentum in case the right catalysts emerge.

If EUR/USD gets above the resistance at 1.1830, it will move towards the resistance at 1.1860. A successful test of this level will open the way to the test of the resistance at 1.1880.

On the support side, a move below 1.1800 will push EUR/USD towards the support level at 1.1775. If EUR/USD declines below this level, it will get to the test of the next support at the 20 EMA at 1.1765. A successful test of this support level will open the way to the test of the support at 1.1750.

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