EUR/USD Daily Forecast – Test Of Support At 1.1830

U.S. Dollar Moves Higher Against Euro

EUR/USD is currently trying to settle below the support at 1.1830 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index is currently moving towards the resistance level at 92.80. In case the U.S. Dollar Index manages to settle above this level, it will move towards the resistance at 93.10 which will be bearish for EUR/USD.

Today, foreign exchange market traders will have a chance to take a look at Producer Prices data from EU. Euro Area Producer Prices are projected to increase by 1.2% month-over-month in May. On a year-over-year basis, Producer Prices are expected to grow by 9.5%. At this point, inflation remains under control, but traders will closely monitor the developments on the pricing front.

In the U.S., traders will focus on Non Farm Payrolls and Unemployment Rate reports for June. Unemployment Rate is projected to decline from 5.8% in May to 5.7% in June as the job market continues to recover from the blow dealt by the coronavirus pandemic. Non Farm Payrolls report is expected to show that U.S. economy added 700,000 jobs in June. This report may have a significant impact on EUR/USD.

Technical Analysis

EUR/USD settled below the support at 1.1860 and is trying to settle below the next support level at 1.1830. In case this attempt is successful, EUR/USD will move towards the next support level which is located at 1.1800.

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

On the upside, the previous support level at 1.1860 will serve as the first resistance level for EUR/USD. If EUR/USD gets back above this level, it will move towards the next resistance at 1.1880. In case EUR/USD manages to settle above the resistance at 1.1880, it will head towards the resistance at 1.1900.

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