EUR/USD Daily Forecast – U.S. Dollar Gains Ground Ahead Of Retail Sales Data
Euro Is Losing Ground Against U.S. Dollar
EUR/USD is currently trying to settle below the support at 1.1800 while the U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index has recently managed to get above the 20 EMA at 92.60 and is moving towards the next resistance level at 92.80. In case the U.S. Dollar Index gets to the test of this level, EUR/USD will find itself under more pressure.
Yesterday, EU reported that Euro Area Industrial Production increased by 1.5% month-over-month in July compared to analyst consensus which called for growth of just 0.6%. On a year-over-year basis, Euro Area Industrial Production grew by 7.7% compared to analyst consensus of 6.3%. The report exceeded analyst expectations but failed to provide significant support to euro.
Today, foreign exchange market traders will focus on U.S. Retail Sales report for August which will indicate how consumers reacted to the continued problems with the Delta variant of coronavirus. Analysts expect that Retail Sales declined by 0.8% month-over-month.
EUR/USD declined below the support level at 1.1800 and is trying to develop additional downside momentum. The next support level for EUR/USD is located near the recent lows at 1.1775.
In case EUR/USD manages to settle below the support at 1.1775, it will move towards the next support at 1.1750. RSI remains in the moderate territory, and there is plenty of room to develop downside momentum. A successful test of the support at 1.1750 will open the way to the test of the next support at 1.1720.
On the upside, EUR/USD needs to get back above 1.1800 to have a chance to develop upside momentum in the near term. The next resistance level is located at the 20 EMA at 1.1810.
A successful test of the resistance at the 20 EMA will push EUR/USD towards the 50 EMA at 1.1820. If EUR/USD gets above this level, it will get to the test of the next resistance at 1.1830.
For a look at all of today’s economic events, check out our economic calendar.