Euro Continues To Lose Ground Against U.S. Dollar
EUR/USD is moving towards the support at 1.1750 while the U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index is currently trying to settle above the resistance at 93.10. If the U.S. Dollar Index gets above this level, it will move towards the resistance at 93.30 which will be bearish for EUR/USD.
It’s a quiet day on the economic calendar, so foreign exchange market traders will stay focused on general market sentiment and coronavirus data. It looks that worries about the Delta variant of coronavirus continue to increase demand for safe-haven assets which is bullish for the American currency.
The demand for dollar is strong, and the recent decrease in Treasury yields had no negative impact on the American currency. The U.S. Dollar Index is slowly moving towards yearly highs at 93.44, and a move above this level will signal that the American currency is ready to develop additional upside momentum.
EUR/USD managed to get below the support at 1.1775 and is trying to get to the test of the next support level at 1.1750. RSI remains in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.
If EUR/USD declines below the support at 1.1750, it will move towards the next support at 1.1720. A move below this level will open the way to the test of the support at 1.1690. In case EUR/USD manages to settle below the support at 1.1690, it will continue its downside move and head towards the support at 1.1660.
On the upside, EUR/USD needs to get back above 1.1775 to have a chance to develop upside momentum in the near term. The next resistance level is located at 1.1800.
If EUR/USD settles above 1.1800, it will move towards the next resistance at 1.1830. A move above this level will lead to the test of the 20 EMA at 1.1840.
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