EUR/USD Daily Forecast – Support At 1.1775 Stays Strong

Euro Moves Higher Against U.S. Dollar

EUR/USD is currently trying to get back above 1.1800 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index failed to settle above the resistance at 92.80 and is moving towards 92.50. If the U.S. Dollar Index declines below this level, it will get to the test of the support level at 92.40 which will be bullish for EUR/USD.

Yesterday, U.S. released inflation reports for June which exceeded analyst expectations and provided support to the American currency.

Today, foreign exchange market traders will focus on Producer Prices data from U.S. Analysts expect that Producer Prices increased by 0.6% month-over-month in June. On a year-over-year basis, Producer Prices are projected to grow by 6.8%.

In the EU, traders will have a chance to take a look at Euro Area Industrial Production data for May. Analysts expect that Euro Area Industrial Production declined by 0.2% month-over-month in May. On a year-over-year basis, Euro Area Industrial Production is projected to increase by 22.2%.

Technical Analysis

eur usd july 14 2021

EUR/USD received support at 1.1775 and rebounded closer to the resistance level at 1.1800. If EUR/USD manages to settle above this level, it will head towards the next resistance at 1.1830.

A successful test of the resistance at 1.1830 will push EUR/USD towards the next resistance level which is located at 1.1860. In case EUR/USD settles above the resistance at 1.1860, it will move towards the resistance at the 20 EMA at 1.1880.

On the support side, EUR/USD needs to settle below the support at 1.1775 to have a chance to develop downside momentum in the near term. RSI is close to the oversold territory but there is enough room to develop downside momentum in case the right catalysts emerge.

In case EUR/USD manages to settle below the support at 1.1775, it will gain additional downside momentum and head towards the next support level at 1.1750. A move below this level will open the way to the test of the support at 1.1720.

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