EUR/USD Daily Forecast – U.S. Dollar Lacks Momentum

Euro Is Mostly Flat Against U.S. Dollar

EUR/USD is currently trying to settle above the resistance at 1.1880 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index settled below the support at 92.30 and made an attempt to settle below the next support level at 92.15. This attempt yielded no results but the U.S. Dollar Index is located close to this support level. A successful test of the support at 92.15 will push the U.S. Dollar Index towards the next support at 91.90 which will be bullish for EUR/USD.

Today, foreign exchange market traders will take a look at the final reading of Euro Area Services PMI report for August which is expected to show that Euro Area Services PMI decreased from 59.8 in July to 59.7 in August. EU will also release Euro Area Retail Sales data for July. Analysts expect that Euro Area Retail Sales increased by 0.1% on a month-over-month basis.

In the U.S., traders will focus on job market data. U.S. Non Farm Payrolls report is projected to show that U.S. economy added 750,000 jobs in August. Unemployment Rate is expected to decline from 5.4% in July to 5.2% in August. Traders will also take a look at the final reading of U.S. Services PMI report which is expected to indicate that Services PMI declined from 59.9 in July to 55.4 in August.

Technical Analysis

EUR/USD managed to settle above 1.1860 and is testing the resistance at 1.1880. In case this test is successful, EUR/USD will move towards the next resistance at 1.1900.

A move above 1.1900 will open the way to the test of the resistance at 1.1925. In case EUR/USD settles above this level, it will head towards the next resistance at 1.1945.

On the support side, the nearest support level for EUR/USD is located at 1.1860. If EUR/USD declines below this level, it will head towards the next support at 1.1830. A move below 1.1830 will push EUR/USD towards the 50 EMA near 1.1820.

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