EUR/USD Daily Forecast – Test Of Support At 1.1660

Euro Is Under Pressure Against U.S. Dollar

EUR/USD is currently trying to settle below the support level which is located near yearly lows at 1.1660 while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index is testing the resistance level at 93.75. If this test is successful, the U.S. Dollar Index will move towards the next resistance at 93.90 which will be bearish for EUR/USD.

Today, foreign exchange market traders will focus on the economic data from EU. Analysts expect that Euro Area Economic Sentiment declined from 117.5 in August to 116.9 in September. The final reading of Euro Area Consumer Confidence report is projected to show that Consumer Confidence improved from -5.3 in August to -4 in September.

Higher Treasury yields have provided material support to the American currency in recent trading sessions. While Treasury yields have pulled back from recent highs, the recent move continues to serve as a material bullish catalyst for the U.S. dollar, and the American currency has good chances to gain additional upside momentum.

Technical Analysis

EUR/USD settled below the support level at 1.1690 and is testing the next support at 1.1660. This is an important moment for EUR/USD as failure to stay above the support at 1.1660 may lead to a sell-off. RSI is close to the oversold territory, but there is enough room to develop additional downside momentum in case EUR/USD settles below yearly lows.

The next support level for EUR/USD is located at 1.1630. A successful test of this level will open the way to the test of the support at 1.1610. If EUR/USD gets below 1.1610, it will move towards the next support at 1.1580.

On the upside, the nearest resistance level for EUR/USD is located at the previous support at 1.1690. A successful test of this level will open the way to the test of the resistance at 1.1720. In case EUR/USD gets above this level, it will move towards the next resistance at the 20 EMA at 1.1740.

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