EUR/USD Daily Forecast – Another Test Of Support At 1.1580

Euro Is Under Pressure Against U.S. Dollar

EUR/USD is currently trying to settle below the support level at 1.1580 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get above the 94 level and is moving towards the resistance at 94.20. If the U.S. Dollar Index gets above this level, it will head towards the next resistance at 94.50 which will be bearish for EUR/USD.

Today, foreign exchange market traders will take a look at the final reading of Euro Area Services PMI report for October. The report is expected to show that Euro Area Services PMI declined from 56.4 in September to 54.7 in October. Euro Area Producer Prices report is expected to indicate that Euro Area Producer Prices grew by 2.2% month-over-month in September. On a year-over-year basis, Euro Area Producer Prices are projected to increase by 15.2%.

In the U.S., traders will focus on job market reports. Initial Jobless Claims report is expected to show that 275,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are projected to decline from 2.24 million to 2.12 million.

Technical Analysis

EUR/USD continues its attempts to settle below the support level at 1.1580. In case EUR/USD manages to settle below this level, it will move towards the next support which is located at 1.1560.

A move below the support at 1.1560 will push EUR/USD towards the support at 1.1540. In case EUR/USD declines below the support at 1.1540, it will move towards the next support level at 1.1525.

On the upside, EUR/USD needs to stay above 1.1580 to have a chance to develop upside momentum in the near term. The next resistance level for EUR/USD is located at the 20 EMA at 1.1605. If EUR/USD gets above the 20 EMA, it will head towards the resistance at 1.1630. A move above 1.1630 will push EUR/USD towards the resistance at the 50 EMA at 1.1650.

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