EUR/USD Daily Forecast – Test Of Support At 1.1540

Euro Moved Closer To Yearly Lows

EUR/USD is currently trying to settle below the support at 1.1540 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index is currently trying to settle above 94.30. In case this attempt is successul, it will continue to move towards yearly highs at 94.50 which will be bearish for EUR/USD.

The main event of the day for foreign exchange market traders is the release of U.S. Non Farm Payrolls report which is expected to show that U.S. economy added 500,000 jobs in September. U.S. Unemployment Rate is projected to decrease from 5.1% in August to 5.2% in September.

Traders will also continue to monitor the developments in U.S. government bond markets. The yield of 10-year Treasuries is currently trying to settle above 1.60%. In case this attempt is successful, it will gain additional upside momentum and move towards the resistance level at 1.63% which will be bullish for the American currency.

Technical Analysis

EUR/USD managed to settle below the support at 1.1560 and is trying to get below the next support level which is located at 1.1540. RSI is in the oversold territory, but there is enough room to gain additional downside momentum in case the right catalysts emerge.

If EUR/USD declines below the support at 1.1540, it will move towards the next support level at 1.1510. A successful test of the support at 1.1510 will push EUR/USD towards the support at 1.1470. In case EUR/USD manages to settle below 1.1470, it will head towards the next support level which is located at 1.1450.

On the upside, the previous support at 1.1560 will serve as the first resistance level for EUR/USD. In case EUR/USD manages to get back above this level, it will head towards the next resistance at 1.1580. A successful test of the resistance level at 1.1580 will open the way to the test of the next resistance at 1.1610.

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