EUR/USD Daily Forecast – Euro Moves Lower Amid Brexit Uncertainty

EUR/USD Video 12.11.20.

Euro Continues To Lose Ground Against U.S. Dollar

EUR/USD has managed to settle below the support at 1.1780 and is trying to get to another test of the major support level at 1.1750 while the U.S. dollar continues to gain ground against a broad basket of currencies.

The U.S. Dollar Index is currently trying to settle above the nearest resistance level at the 20 EMA at 93.15. A move above this level will open the way to the test of the next resistance at the 50 EMA at 93.40 which will be bearish for EUR/USD.

Today, EU will provide Industrial Production report for September. Analysts expect that Industrial Production increased by 0.7% on a month-over-month basis. On a year-over-year basis, Industrial Production is projected to decline by 5.8%.

In addition to economic news, euro will be influenced by the latest news on the Brexit front. The deadline for the Brexit deal between EU and UK was pushed to November 19, and it remains to be seen whether negotiators will be able to reach a compromise deal.

This uncertainty has recently put some pressure on both the British pound and the euro. In addition, the market is worried about the potential economic impact of the current European lockdowns which serve as a negative catalyst for the euro.

Technical Analysis

EUR/USD has managed to get below the 20 EMA at 1.1780 and is trying to settle below the major support level at 1.1750. The 50 EMA is located at 1.1765 so EUR/USD will continue to get strong support in the 1.1750  – 1.1780 area.

If EUR/USD settles below the support at 1.1750, it will gain downside momentum and head towards the next support level at 1.1720. A move below this level will push EUR/USD towards another significant support level at 1.1695.

On the upside, the previous support at the 20 EMA at 1.1780 will likely serve as the first resistance level for EUR/USD. A move above this level will push EUR/USD to the test of the next resistance at 1.1800.

In case EUR/USD gets above 1.1800, it will head towards the material resistance level at 1.1830.

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