EUR/USD Daily Forecast – U.S. Dollar Gains More Ground Against Euro

Euro Is Under Pressure Against U.S. Dollar

EUR/USD is currently trying to settle below the support level at 1.1775 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index is moving towards the resistance level at 92.80. If the U.S. Dollar Index gets back above this level, it will continue its upside move and head 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 the second estimate of the second-quarter Euro Area GDP Growth Rate. Analysts expect that Euro Area GDP grew by 2% quarter-over-quarter after declining by 0.3% in the first quarter.

Meanwhile, Euro Area Employment Change report for the second quarter is projected to show that employment increased by 0.5% on a quarter-over-quarter basis.

In the U.S., traders will focus on Retail Sales data for July. Analysts expect that Retail Sales declined by 0.2% month-over-month. This report is especially interesting after the surprising Consumer Sentiment report which indicated that Consumer Sentiment dropped sharply.

Technical Analysis

EUR/USD settled below the support at the 20 EMA at 1.1790 and is trying to settle below the next support level at 1.1775. If EUR/USD settles below 1.1775, it will get to the test of the next support at 1.1750.

A move below the support level at 1.1750 will push EUR/USD towards the support at 1.1720. If EUR/USD gets below this level, it will move towards the support which is located at 1.1690. A successful test of the support at 1.1690 will push EUR/USD towards the support at 1.1660.

On the upside, the nearest resistance level for EUR/USD is located at the 20 EMA at 1.1790. EUR/USD may also face some resistance near the recent highs at 1.1800. If EUR/USD manages to get above the resistance area at 1.1790 – 1.1800, it will gain additional upside momentum and head towards the next resistance level which is located at 1.1830.

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