EUR/USD Daily Forecast – Another Test Of Support At 1.1270

U.S. Dollar Gains Ground Against Euro

EUR/USD continues its attempts to settle below the support at 1.1270 while U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index is currently trying to get to the test of the nearest resistance level which is located at 96.50. A move above this level will open the way to the test of the next resistance at 96.70 which will be bearish for EUR/USD.

Today, foreign exchange market traders will have a chance to take a look at Euro Area Industrial Production report. Analysts expect that Euro Area Industrial Production increased by 1.2% month-over-month in October after falling by 0.2% in September. On a year-over-year basis, Euro Area Industrial Production is projected to increase by 3.2%.

In the U.S., traders will focus on Producer Prices report which may have a material impact on currency dynamics. Analysts expect that Producer Prices grew by 0.5% month-over-month in November. On a year-over-year basis, Producer Prices are projected to grow by 9.2%.

Technical Analysis

EUR/USD managed to settle below the support level at 1.1300 and is trying to settle below the next support at 1.1270. In case EUR/USD manages to settle below the support at 1.1270, it will gain additional downside momentum and move towards the next support level which is located at 1.1230.

A move below the support at 1.1230 will push EUR/USD towards the support at 1.1200. If EUR/USD declines below 1.1200, it will head towards the next support level at 1.1170.

On the upside, the previous support level at 1.1300 will serve as the first resistance level for EUR/USD. If EUR/USD manages to settle back above 1.1300, it will move towards the next resistance which is located at the 20 EMA at 1.1315.

A successful test of the resistance at the 20 EMA will push EUR/USD towards the resistance at 1.1330. If EUR/USD climbs above this level, it will move towards the next resistance level at 1.1350.

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