EUR/USD Daily Forecast – Another Test Of Resistance At 1.1750

EUR/USD Video 05.11.20.

Euro Tries To Move Higher Ahead Of U.S. Fed Interest Rate Decision

EUR/USD  continues its attempts to settle above the key resistance level at 1.1750 as the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index declined below 93.50 and is trying to develop additional downside momentum. The nearest significant support level for the U.S. Dollar Index is located at the 93 level. If the U.S. Dollar Index moves towards this level, EUR/USD will get additional support.

Yesterday, EU reported that Euro Area Services PMI declined from 48 in September to 46.9 in October. Numbers below 50 show contraction. Analysts expected that Services PMI would decline to 46.2 so the report was better than analyst expectations. However, it highlighted the challenging situation in the Euro Area services segment which is set to get worse due to lockdowns in November.

Today, EU is projected to report that Euro Area Retail Sales decreased by 1% month-over-month in September. On a year-over-year basis, Retail Sales are expected to increase by 2.8%.

The main event of the day for EUR/USD traders is the U.S. Fed Interest Rate Decision, although they will certainly continue to follow the latest news about the U.S. presidential election. The Fed is expected to leave the rate unchanged, and traders will focus on the central bank’s commentary.

Technical Analysis

EUR/USD is trying to settle above the nearest resistance level at 1.1750. If this attempt is successful, EUR/USD will move towards the next resistance at 1.1780.

A move above the resistance at 1.1780 will signal that EUR/USD is ready to develop additional upside momentum. In this case, EUR/USD will head towards the resistance at 1.1830.

On the support side, the nearest support for EUR/USD is located at 1.1720. In case EUR/USD declines below this support level, it will head towards the next support at 1.1695.

If EUR/USD gets below the support at 1.1695, it will head towards the major support level at 1.1630. A move below this important support level will likely lead to a sell-off.

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