EUR/USD Daily Forecast – Another Test Of Resistance At 1.1830

EUR/USD Video 06.11.20.

Euro Tries To Move Higher Against U.S. Dollar

EUR/USD is trying to settle above the resistance at 1.1830 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to get above the nearest resistance level at 92.80 but failed to gain sufficient upside momentum and declined closer to 92.60. The nearest support level for the U.S. Dollar Index is located at 92.50. If the U.S. Dollar Index settles below this support level, it will gain additional downside momentum which will be bullish for EUR/USD.

Yesterday, EU reported that Euro Area Retail Sales decreased by 2% month-over-month in September compared to analyst consensus which called for a decline of 1%. On a year-over-year basis, Retail Sales increased by 2.2%.

Most likely, Retail Sales will stay under pressure in the upcoming months due to lockdowns which were implemented by European countries to stop the spread of the virus.

The U.S. Fed left the interest rate unchanged on Thursday and promised to support the economy but did not reveal any new measures. The U.S. Fed Interest Rate Decision had little impact on currency markets which remain preoccupied with the ongoing election battle between Donald Trump and Joe Biden.

Technical Analysis

EUR/USD is currently testing the nearest resistance level at 1.1830. If EUR/USD manages to settle above this level, it will move towards the next resistance at October highs at 1.1880.

A move above 1.1880 will open the way to the test of the major resistance level at 1.1910. In case EUR/USD gets above 1.1910, it will gain upside momentum and head towards the next resistance at 1.1965.

On the support side, EUR/USD will likely get some support near 1.1780. If EUR/USD declines below this level, it will head towards the major support level at 1.1750. The 20 EMA and the 50 EMA are located in the nearby, and EUR/USD will likely get material support in this area.

If EUR/USD moves below the support at 1.1750, it will gain downside momentum and quicky get to the test of the next support level at 1.1720.

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