EUR/USD Daily Forecast – U.S. Dollar Moves Higher Against Euro

Euro Is Losing Ground Against U.S. Dollar

EUR/USD is currently trying to get back below 1.1800 while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index received support near the 20 EMA at 92.45 and is trying to settle above 92.50. In case this attempt is successful, the U.S. Dollar Index may gain additional upside momentum and head towards the resistance at 92.80 which will be bearish for EUR/USD.

However, it remains to be seen whether American currency will be able to gain any momentum ahead of the Fed Interest Rate Decision which will be announced later today. As usual, foreign exchange market traders will focus on Fed’s commentary as the rate is expected to stay unchanged.

While traders wait for Fed’s decision and commentary, they have a chance to take a look at Germany’s Consumer Confidence report for August. The report indicated that Consumer Confidence remained unchanged at -0.3 compared to analyst consensus of 1.

Technical Analysis

EUR/USD failed to settle above the resistance level which is located at the 20 EMA at 1.1820 and moved closer to the support at 1.1800. In case EUR/USD manages to settle below this support level, it will head towards the next support at 1.1775.

A successful test of the support at 1.1775 will push EUR/USD towards the support at 1.1750. This support level has already been tested many times and proved its strength so EUR/USD will need additional catalysts to settle below 1.1750. A move below the support at 1.1750 will open the way to the test of the support at 1.1720.

On the upside, the nearest resistance level for EUR/USD is located at the 20 EMA at 1.1820. A successful test of the 20 EMA will lead to the test of the next resistance at 1.1830.

If EUR/USD gets above 1.1830, it will move towards the resistance at 1.1860. In case EUR/USD manages to settle above this level, it will head towards the next resistance level at 1.1880.

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