EUR/USD is currently trying to settle back above the 20 EMA which is located near 1.1815 while the U.S. dollar is losing some ground against a broad basket of currencies.
The U.S. Dollar Index is testing the support level at the 20 EMA at 92.60. A move below this level will push the U.S. Dollar Index back towards the 50 EMA at 92.45 which will be bullish for EUR/USD.
Today, foreign exchange market traders will have a chance to take a look at Euro Area Industrial Production report for July. Analysts expect that Euro Area Industrial Production increased by 0.6% month-over-month in July after falling by 1% in June. On a year-over-year basis, Euro Area Industrial Production is projected to grow by 6.3%.
In the U.S., traders will focus on Industrial Production and Manufacturing Production reports for August. Industrial Production is projected to grow by 0.4% month-over-month after growing by 0.9% in July. Manufacturing Production is expected to increase by 0.4% month-over-month.
EUR/USD is currently testing the resistance at the 20 EMA near 1.1815. In case this test is successful, EUR/USD will get to the test of the 50 EMA at 1.1820.
A move above the 50 EMA will open the way to the test of the next resistance level which is located at 1.1830. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.
If EUR/USD manages to settle above the resistance at 1.1830, it will move towards the resistance at 1.1860. A successful test of this level will push EUR/USD towards the resistance at 1.1880.
On the support side, the nearest support level for EUR/USD is located at 1.1800. This support level has already been tested several times and proved its strength. A move below the support at 1.1800 will push EUR/USD towards the support at 1.1775. In case EUR/USD gets below this level, it will head towards the next support level at 1.1750.
For a look at all of today’s economic events, check out our economic calendar.