Euro Is Mostly Flat Against U.S. Dollar
EUR/USD is testing the support level at 1.1775 while the U.S. dollar is gaining some ground against a broad basket of currencies.
The U.S. Dollar Index has managed to settle above 92.80 and is trying to get to the test of the 93 level. If the U.S. Dollar Index moves above 93, it will test the resistance at 93.10 which will be bearish for EUR/USD.
Yesterday, European Central Bank left the interest rate unchanged and reiterated its dovish message. ECB delivered no surprises, and its commentary had little impact on currency dynamics.
EU has also provided flash reading of Euro Area Consumer Confidence report for July which showed that Consumer Confidence declined from -3.3 in June to -4.4 in July compared to analyst consensus of -2.5.
Today, foreign exchange market traders will focus on flash PMI data from EU and U.S. Analysts expect that Euro Area Manufacturing PMI declined from 63.4 in June to 62.5 in July. Euro Area Services PMI is projected to increase from 58.3 to 59.5.
In the U.S., Manufacturing PMI is expected to decline from 62.1 to 62 while Services PMI is expected to improve from 64.6 to 64.8. It will be interesting to see whether the recent increase in the number of new coronavirus cases in the U.S. had any impact on the services segment.
EUR/USD continues its attempts to settle below the support level at 1.1775. If EUR/USD manages to settle below this level, it will move towards the next support at 1.1750.
A successful test of the support at 1.1750 will open the way to the test of the support level which is located at 1.1720. In case EUR/USD settles below 1.1720, it will move towards the support at 1.1690.
On the upside, the nearest resistance level for EUR/USD is located at 1.1800. A successful test of this level will push EUR/USD towards the resistance at the 20 EMA at 1.1830. If EUR/USD gets above the 20 EMA, it will move towards the resistance at 1.1860.
For a look at all of today’s economic events, check out our economic calendar.