Euro tries to gain ground against the US dollar
EUR / USD continues its attempts to settle above resistance at 1.1610 as the US dollar loses ground against a large basket of currencies.
The US dollar index is currently trying to move below the 94 level. If the US dollar index moves below this level, it will gain further bearish momentum and move to the support at 93.75 which will be. bullish for EUR / USD.
Today, the United States is expected to report that factory orders rose 1% month over month in August. Whether this report will have a significant impact on currency dynamics remains to be seen, and forex traders can stay focused on overall market sentiment.
The euro is currently trying to move away from annual lows, which is natural after the sell-off. However, concerns about rising inflation and the potential reduction in the Fed’s asset purchase program could provide further support for the US currency in future trading sessions.
EUR / USD has moved above 1.1580 and is trying to move above the resistance level at 1.1610. This level of resistance has already been tested several times and has proven its strength. The RSI remains close to oversold territory, and there is plenty of room to gain additional bullish momentum in case the right catalysts emerge.
If EUR / USD crosses above 1.1610, it will head to the next resistance level at 1.1630. A successful test of resistance at 1.1630 will push EUR / USD towards resistance at 1.1660. If the EUR / USD manages to stabilize above this level, it will head to the next resistance which is at the 20 EMA at 1.1690.
On the support side, EUR / USD needs to move back below support at 1.1580 to have a chance to develop short term bearish momentum. The next level of support for EUR / USD is near the recent lows at 1.1560. A successful test of the support at 1.1560 will pave the way for testing the next support at 1.1540.
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