EUR/USD Daily Forecast – Euro Pulls Back After Rally
Euro Is Under Pressure Against U.S. Dollar
EUR/USD is currently trying to settle back below the support at 1.1270 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 resistance at 96.25 and is trying to develop additional upside momentum. In case this attempt is successful, the U.S. Dollar Index will get to the test of the next resistance at 96.50 which will be bearish for EUR/USD.
Today, foreign exchange market traders will focus on the economic data from EU. The final reading of Euro Area Consumer Confidence report is projected to show that Consumer Confidence declined from -4.8 in October to -6.8 in November. Euro Area Industrial Sentiment is expected to decrease from 14.2 in October to 13.9 in November, while Euro Area Services Sentiment is projected to decline from 18.2 to 16.6.
Traders will also take a look at inflation data from Germany. Analysts expect that Germany’s Inflation Rate declined by 0.4% month-over-month in November. On a year-over-year basis, Inflation Rate is projected to grow by 5%.
EUR/USD is currently testing the support level at 1.1270. In case this test is successful, EUR/USD will move towards the next support level which is located at 1.1230.
A move below 1.1230 will open the way to the test of the support at 1.1200. In case EUR/USD declines below this level, it will gain additional downside momentum and head towards the support at 1.1170.
On the upside, EUR/USD needs to stay above 1.1270 to have a chance to develop upside momentum in the near term. The next resistance level for EUR/USD is located at 1.1300.
In case EUR/USD manages to settle above the resistance at 1.1300, it will move towards the next resistance level at 1.1325. A successful test of this level will push EUR/USD towards the resistance which is located at the 20 EMA at 1.1350.
For a look at all of today’s economic events, check out our economic calendar.