Euro Is Losing Ground Against U.S. Dollar
EUR/USD is currently trying to settle back below 1.1600 while the U.S. dollar is moving higher against a broad basket of currencies.
The U.S. Dollar Index is currently testing the resistance at 94. In case this test is successful, the U.S. Dollar Index will move towards the resistance at 94.20 which will be bearish for EUR/USD.
Today, EU will release the final reading of Euro Area Services PMI report for September. The report is expected to show that Euro Area Services PMI declined from 59 in August to 56.3 in September.
Foreign exchange market traders will also have a chance to take a look at Euro Area Producer Prices data for August. Analysts expect that Euro Area Producer Prices increased by 1.3% month-over-month in August. On a year-over-year basis, Euro Area Producer Prices are projected to grow by as much as 13.5%.
Euro Area Producer Prices data may have an impact on EUR/USD dynamics in case it shows that prices are rising faster than expected. At the same time, it should be noted that ECB remains very dovish, and it has completely ignored all signs of rising inflation.
EUR/USD did not manage to settle above the resistance at 1.1610 and is trying to settle back below 1.1600. In case this attempt is successful, it will get to the test of the support level which is located at 1.1580.
A move below the support at 1.1580 will open the way to the test of the next support at 1.1560. In case EUR/USD declines below this support level, it will head towards the next support at 1.1540.
On the upside, EUR/USD needs to settle above 1.1610 to continue its rebound. The next resistance level for EUR/USD is located at 1.1630.
If EUR/USD manages to settle above 1.1630, it will head towards the resistance at 1.1660. A successful test of this level will open the way to the test of the resistance which is located at the 20 EMA at 1.1680.
For a look at all of today’s economic events, check out our economic calendar.