EUR/USD Daily Forecast – Test Of Resistance At 1.1660
U.S. Dollar Is Under Pressure Against Euro
EUR/USD is currently trying to settle above the resistance at 1.1660 while the U.S. dollar is under pressure against a broad basket of currencies.
The U.S. Dollar Index has managed to get below the support level at 93.75 and continues to move lower. In case the U.S. Dollar Index gains additional downside momentum, it will head towards the next support level near the 50 EMA at 93.40 which will be bullish for EUR/USD.
The U.S. Dollar found itself under pressure after the disappointing Industrial Production report which was released on Monday. The yield of 10-year Treasuries has moved back below 1.60% and is currently trying to settle below 1.57%. If this attempt is successful, it will continue to move towards the 20 EMA at 1.52% which will be bearish for the American currency.
Today, foreign exchange market traders will also take a look at U.S housing market data. Building Permits are expected to decline by 1.8% month-over-month in September while Housing Starts are projected to decrease by 0.9%.
Technical Analysis
EUR/USD managed to settle above the resistance at 1.1630 and is trying to settle above the next resistance level at 1.1660. In case the test of the resistance at 1.1660 is successful, EUR/USD will move towards the next resistance which is located at the 50 EMA at 1.1685.
A move above the 50 EMA will open the way to the test of the next resistance level at 1.1720. In case EUR/USD gets above 1.1720, it will move towards the resistance at 1.1750.
On the support side, the previous resistance level at 1.1630 will serve as the first support level for EUR/USD. If EUR/USD gets below this support level, it will head towards the next support at 1.1610 although it can also get some support near the 20 EMA at 1.1620. A successful test of the support level at 1.1610 will open the way to the test of the next support which is located at 1.1580.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
