EUR/USD Daily Forecast – U.S. Dollar Tries To Rebound Against Euro
Euro Is Losing Some Ground Ahead Of Euro Area Inflation Reports
EUR/USD is currently trying to settle back below 1.1630 while the U.S. dollar is gaining some ground against a broad basket of currencies.
The U.S. Dollar Index managed to get back above 93.75 and is currently trying to settle above the 20 EMA which is located near 93.85. In case this attempt is successful, the U.S. Dollar Index will move towards the resistance at the 94 level which will be bearish for EUR/USD.
Today, foreign exchange market traders will focus on inflation data from EU. Euro Area Inflation Rate is projected to increase by 0.5% month-over-month in September. On a year-over-year basis, Euro Area Inflation Rate is expected to grow by 3.4%. Euro Area Core Inflation Rate is projected to increase by 1.9% year-over-year.
Traders will also continue to monitor the developments in U.S. government bond markets. The yield of 10-year Treasuries has recently managed to get above the resistance at 1.64% and is currently trying to settle above 1.66%. In case this attempt is successful, the yield of 10-year Treasuries will continue to move towards the 1.70% level which will provide more support to the American currency.
Technical Analysis
EUR/USD failed to settle above the resistance at 1.1660 and declined towards 1.1630. In case EUR/USD manages to settle below this level, it will move towards the next support level which is located at 1.1610.
A move below the support at 1.1610 will push EUR/USD towards the next support at 1.1580. If EUR/USD settles below this level, it will head towards the next support level at 1.1560.
On the upside, EUR/USD needs to stay above 1.1630 to have a chance to develop upside momentum in the near term. The next resistance level is located at 1.1660. A successful test of this level will open the way to the test of the resistance at the 50 EMA at 1.1680. In case EUR/USD gets above the 50 EMA, it will get to the test of the resistance at 1.1690.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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