Forex Market: EUR/USD daily forecast

During yesterday’s trading session EUR/USD traded within the range of 1.3589-1.3651 and closed at 1.3604.

At 6:13 GMT today EUR/USD was losing 0.04% for the day to trade at 1.3603. The pair touched a daily low at 1.3596 at 5:10 GMT.

Fundamental view

Euro zone

Spain’s annualized index of consumer prices (CPI) probably rose 0.1% in June, after adding 0.2% in the previous month. The index measures the change in price levels of a basket of goods and services from consumer’s perspective and also reflects purchasing trends. In case the CPI jumps more than projected, this would have a bullish effect on the euro. The National Institute of Statistics will release its official report at 7:00 GMT.

At the same time, the Spanish final annualized CPI, evaluated in accordance with Eurostat’s harmonized methodology, probably remained unchanged last month, matching the preliminary estimate, released on June 13th.

United States

The US Federal Budget Balance probably turned to surplus of $79 billion last month, after a $129.97 billion deficit in May.

The monthly newsletter on revenue and expenditure of the United States Government (MTS) is prepared by the Office of Financial Management at the Ministry of Finance after approval by the Assistant Secretary of the Treasury. The newsletter covers the financial activities of the Federal Government and non- budgetary activities carried out in accordance with the budget of the U.S. government, ie. revenue and expenditure of funds, deficit or surplus, which means cover the deficit or surplus allocation. The main information sources include accounting data reported by federal sources, tax and regional structures of Fed.

A higher than projected surplus would heighten greenbacks appeal. The US Department of the Treasury will publish its report at 18:00 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/USD manages to breach the first resistance level at 1.3640, it will probably continue up to test 1.3677. In case the second key resistance is broken, the pair will probably attempt to advance to 1.3702.

If EUR/USD manages to breach the first key support at 1.3578, it will probably continue to slide and test 1.3553. With this second key support broken, the movement to the downside will probably continue to 1.3516.