EUR/USD Daily Forecast – Attempt To Get Above Resistance At 1.1695

EUR/USD Video 29.09.20.

Euro Tries To Continue Its Rebound

EUR/USD is trying to get to the test the nearest resistance level at 1.1695 as the U.S. Dollar Index is testing the nearest support level at 94.20.

The U.S. Dollar Index is currently trying to gain more downside momentum ahead of the first U.S. Presidential Debate between Donald Trump and Joe Biden.

Meanwhile, U.S. House Speaker Nancy Pelosi stated that Democrats proposed a new $2.2 trillion coronavirus aid bill and were ready to make a deal with Republicans.

It remains to be seen whether the parties will be able to reach consensus since Republicans have previously indicated that they were willing to approve a coronavirus aid package worth $1.3 trillion.

The difference between the two proposals is $900 billion which is a huge gap that would have to be narrowed if both sides are serious about reaching a compromise deal.

In addition to U.S. Presidential Debate, EUR/USD traders will focus on the final reading of the Euro Area Consumer Confidence report for September. Consumer Confidence is projected to improve from -14.7 in August to -13.9 in September. If Consumer Confidence is weaker than expected, euro may find itself under additional pressure.

Technical Analysis

EUR/USD made an attempt to gain more upside momentum but did not manage to get to the test of the nearest resistance level at 1.1695. A move above this level will lead to increased upside momentum and push EUR/USD towards the next resistance level at the 50 EMA at 1.1735.

If EUR/USD gets above the 50 EMA at 1.1735, it will immediately get to the test of the next resistance at the 20 EMA at 1.1750. A move above the resistance at the 20 EMA will signal that EUR/USD will try to establish a new upside trend.

On the support side, the nearest support level for EUR/USD is located at 1.1630. If EUR/USD manages to settle below this level, it will gain additional downside momentum and head towards the next support level at 1.1600. RSI is at moderate levels so there is plenty of room to gain more downside momentum in case the right catalysts emerge.

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