Euro Is Mostly Flat Against U.S. Dollar

EUR/USD continues its attempts to settle below the support at 1.1860 while the U.S. dollar is flat against a broad basket of currencies ahead of the release of U.S. inflation data for June.

The U.S. Dollar Index received strong support at 92.15 and is trying to gain upside momentum. However, it remains to be seen whether the American currency will get any momentum before foreign exchange market traders see the latest U.S. inflation data. If the U.S. Dollar Index manages to move towards the nearest resistance level at 92.40, EUR/USD will find itself under pressure.

Germany has recently released the final reading of inflation reports for June. Inflation Rate grew by 2.3% year-over-year, in line with the analyst consensus. The report had no impact on EUR/USD dynamics as it met analyst estimates while traders continued to wait for the release of the ultra-important U.S. inflation data.

In the U.S., Inflation Rate is projected to grow by 4.9% year-over-year while Core Inflation Rate is expected to increase by 4% in June. These reports may have a significant impact on currency dynamics, and traders should be prepared for fast moves.

Technical Analysis

EUR/USD is currently trying to settle below the support at 1.1860. In case this attempt is successful, EUR/USD will move towards the next support level which is located at 1.1830.

A move below the support at 1.1830 will open the way to the test of the support at 1.1800. If EUR/USD gets below the support at 1.1800, it will head towards the next support level at 1.1775.

On the upside, EUR/USD needs to settle above the resistance at 1.1880 to have a chance to develop upside momentum in the near term. If EUR/USD manages to settle above this level, it will head towards the resistance at the 20 EMA at 1.1895. A successful test of this level will push EUR/USD towards the resistance at 1.1925.

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

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This article was originally posted on FX Empire


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