EUR/USD Daily Forecast – Test Of Support At 1.1800

Traders Wait For Retail Sales Data From U.S.

EUR/USD is currently trying to get back below the support at 1.1800 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index is trying to settle above 92.60. In case the U.S. Dollar Index manages to settle above this level, it will move towards the resistance at 92.80 which will be bearish for EUR/USD.

Today, foreign exchange market traders will have a chance to take a look at the final readings of Euro Area inflation reports for June. Analysts expect that Euro Area Inflation Rate increased by 0.3% month-over-month in June. On a year-over-year basis, Euro Area Inflation Rate is projected to grow by 1.9%. Core Inflation Rate is expected to increase by 0.9% year-over-year.

In the U.S., traders will focus on Retail Sales report for June and preliminary Consumer Sentiment data for July. Retail Sales are projected to decline by 0.4% month-over-month in June after declining by 1.3% in May. Consumer Sentiment is expected to improve from 85.5 in June to 86.5 in July.

Technical Analysis

eur usd july 16 2021

EUR/USD managed to settle below the support at 1.1830 and is testing the next support level at 1.1800. In case EUR/USD manages to settle below the support at 1.1800, it will head towards the next support level which is located at 1.1775.

A move below the support at 1.1775 will open the way to the test of the next support at 1.1750. In case EUR/USD settles below 1.1750, it will move towards the support at 1.1720.

On the upside, the previous support at 1.1830 will serve as the first resistance level for EUR/USD. If EUR/USD gets above 1.1830, it will head towards the resistance at 1.1860. A successful test of the resistance at 1.1860 will push EUR/USD towards the next resistance level which is located at 1.1880. It should be noted that the 20 EMA is located at 1.1870 so EUR/USD will likely face significant resistance in the 1.1860 – 1.1880 range.

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