EUR/USD Daily Forecast – U.S. Dollar Tries To Gain Ground Against Euro

Euro Moves Lower Against U.S. Dollar

EUR/USD failed to settle above the resistance at 1.1750 and is moving towards the support level at 1.1720 while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index is currently moving towards the 93 level. In case the U.S. Dollar Index manages to get back above this level, it will get to the test of the resistance at 93.10 which will bearish for EUR/USD.

Today, foreign exchange market traders will have a chance to take a look at Industrial Production report from EU. Analysts expect that Euro Area Industrial Production declined by 0.2% month-over-month in June. On a year-over-year basis, Euro Area Industrial Production is expected to increase by 10.4%.

Traders will also focus on the latest job market data from U.S. Initial Jobless Claims report is projected to show that 375,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are expected to decline from 2.93 million to 2.88 million.

Analysts expect that U.S. Producer Prices increased by 0.6% month-over-month in July. On a year-over-year basis, Producer Prices are projected to grow by 7.3%.

Technical Analysis

EUR/USD has recently made an attempt to settle above the resistance at 1.1750 but lost momentum and pulled back. The nearest support level for EUR/USD is located at 1.1720. In case EUR/USD manages to settle below this level, it will move towards the support at 1.1690.

A successful test of the support at 1.1690 will push EUR/USD towards the next support level at 1.1660. In case EUR/USD declines below this level, it will move towards the next support at 1.1625.

On the upside, EUR/USD needs to settle above the resistance level at 1.1750 to have a chance to rebound. In case EUR/USD settles above 1.1750, it will gain upside momentum and head towards the resistance at 1.1775. A move above 1.1775 will open the way to the test of the resistance at the 20 EMA at 1.1795.

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