EUR/USD Daily Forecast – Test Of Support At 1.1860

Euro Is Mostly Flat Against U.S. Dollar

EUR/USD is currently trying to settle below the support at 1.1860 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to get above 92.50 but lost momentum and pulled back towards 92.40. In case the U.S. Dollar Index manages to settle below this level, it will head towards the support at 92.15 which will be bullish for EUR/USD.

Today, foreign exchange market traders will focus on the job market data from U.S. Initial Jobless Claims are projected to decline from 411,000 to 390,000 while Continuing Jobless Claims are expected to decrease from 3.39 million to 3.38 million.

Traders will also focus on the final readings of Manufacturing PMI reports for June. Euro Area Manufacturing PMI is projected to remain unchanged at 63.1. U.S. Manufacturing PMI is expected to grow from 62.1 in May to 62.6 in June.

EU will also release Unemployment Rate report which is expected to show that Unemployment Rate remained unchanged at 8% in May.

Technical Analysis

EUR/USD managed to settle below the support at 1.1880 and is trying to settle below the next support level at 1.1860. In case EUR/USD manages to settle below this level, it will head towards the support at 1.1830.

A move below the support at 1.1830 will open the way to the test of the support at 1.1800. In case EUR/USD declines below 1.1800, it will head towards the next support which is located at 1.1775.

On the upside, the previous support at 1.1880 will serve as the first resistance level for EUR/USD. If EUR/USD manages to settle back above this level, it will head towards the resistance at 1.1900. A successful test of this level will push EUR/USD towards the resistance at 1.1925.

From a big picture point of view, EUR/USD needs to settle below 1.1860 to continue its downside move. If EUR/USD fails to settle below this level, it will have a good chance to quickly get back above 1.1900.

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