EUR/USD Daily Forecast – U.S. Dollar Is Under Pressure Ahead Of Inflation DataEUR/USD is testing the resistance level at 1.1830.
Euro Moves Higher Against U.S. Dollar
EUR/USD is currently trying to settle above the resistance at 1.1830 while the U.S. dollar is losing ground against a broad basket of currencies.
The U.S. Dollar Index has recently managed to get below the 20 EMA at 92.60 and is moving towards the 50 EMA at 92.45. In case the U.S. Dollar Index declines below the 50 EMA, it will gain additional downside momentum and head towards the support at 92.30 which will be bullish for EUR/USD.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
There are no important economic reports scheduled to be released in the EU today so foreign exchange market traders will focus on inflation data from the U.S.
Analysts expect that Inflation Rate increased by 5.3% year-over-year in August while Core Inflation Rate grew by 4.2%. These reports may have a significant impact on currency dynamics as they will show whether inflation remains under control. Fed Chair Jerome Powell has previously stated that higher inflation was a temporary phenomenon. In case inflation reports meet analyst expectations, Fed will have an opportunity to postpone the reduction of its asset purchase program, which will be bearish for the American currency.
EUR/USD managed to get above the 50 EMA near 1.1825 and is trying to settle above the resistance at 1.1830. In case this attempt is successful, it will move towards the next resistance level which is located at 1.1860.
A move above the resistance at 1.1860 will open the way to the test of the next resistance at 1.1880. In case EUR/USD manages to get above this level, it will head towards the resistance at 1.1900.
On the support side, a move below the 50 EMA will push EUR/USD towards the 20 EMA which is located at 1.1815. If EUR/USD declines below this level, it will head towards the next support level at 1.1800. A successful test of the support at 1.1800 will open the way to the test of the next support at 1.1775.
For a look at all of today’s economic events, check out our economic calendar.