EUR/USD Daily Forecast – Test Of Resistance At 1.1860

U.S. Dollar Is Losing Ground Against Euro

EUR/USD is currently trying to settle above the resistance at 1.1860 while the U.S. dollar is moving lower against a broad basket of currencies.

The U.S. Dollar Index is testing the nearest support level which is located at 92.15. A move below this level will push the U.S. Dollar Index towards the support at 92 which will be bullish for EUR/USD.

Today, foreign exchange market traders will have a chance to take a look at the final reading of Euro Area Consumer Confidence report. Analysts expect that Euro Area Consumer Confidence decreased from -3.3 in June to -4.4 in July.

Euro Area Industrial Sentiment is projected to improve from 12.7 in June to 13 in July while Euro Area Services Sentiment is expected to grow from 17.9 to 19.9.

In the U.S., traders will focus on the second-quarter GDP Growth Rate report which is expected to show that GDP grew by 8.5% quarter-over-quarter. Initial Jobless Claims are projected to decline from 419,000 to 380,000 while Continuing Jobless Claims are expected to decrease from 3.24 million to 3.2 million.

U.S. will also provide Pending Home Sales report which is expected to show that Pending Home Sales grew by 0.3% month-over-month in June.

It remains to be seen whether EUR/USD will be sensitive to economic reports today or traders will stay focused on yesterday’s commentary from the Fed.

Technical Analysis

EUR/USD managed to settle above the resistance at the 20 EMA at 1.1830 and is testing the next resistance level at 1.1860. If this test is successful, it will move towards the next resistance at 1.1880.

A move above 1.1880 will push EUR/USD towards the resistance at the 50 EMA at 1.1900. In case EUR/USD gets above this level, it will move towards the next resistance level at 1.1925.

On the support side, the previous resistance at the 20 EMA at 1.1830 will serve as the first support level for EUR/USD. A move below this level will push EUR/USD towards the support at 1.1800.

If EUR/USD declines below 1.1800, it will head towards the next support at 1.1775. A successful test of this level will open the way to the test of the next support at 1.1750.

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