EUR/USD Daily Forecast – Another Test Of Resistance At 1.2155

EUR/USD Video 11.12.20.

Euro Moves Higher Against U.S. Dollar Ahead Of The Weekend

EUR/USD is currently testing the resistance at 1.2155 while the U.S. dollar remains under pressure against a broad basket of currencies.

The U.S. Dollar Index failed to settle above the 91 level and gained downside momentum. Currently, it is moving towards the nearest support level at the yearly lows at 90.50. If the U.S. Dollar Index manages to settle below this level, it will head towards the 90 level which will be bullish for EUR/USD.

Yesterday, European Central Bank decided to leave the interest rate unchanged, in line with the analyst consensus. In order to support the economy which suffers from the second wave of the virus, ECB expanded its pandemic emergency purchase programme by 500 billion euro. This move did not put any pressure on the euro which moved higher against U.S. dollar.

In the U.S., foreign exchange market traders will continue to follow the latest developments on the stimulus front. U.S. House Speaker Nancy Pelosi has recently suggested that stimulus negotiations could stretch beyond Christmas if necessary.

Technical Analysis

EUR/USD is trying to settle above the nearest resistance level at 1.2155. If this attempt is successful, EUR/USD will move towards the next resistance at the recent highs at 1.2175.

A successful test of this level will open the way to the test of the next resistance at 1.2220. In case EUR/USD manages to settle above the resistance at 1.2220, it will move towards the resistance at 1.2250. The resistance at 1.2250 has the potential to serve as a major obstacle on the way up for EUR/USD.

On the support side, the nearest support level for EUR/USD is still located at 1.2090. There are no important levels between 1.2090 and 1.2155 so EUR/USD may quickly get back to the test of this level if negative catalysts emerge.

A move below the support at 1.2090 will push EUR/USD towards the next support at the recent lows at 1.2060. If EUR/USD declines below this level, it will head towards the support at the 20 EMA at 1.2030.

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