EUR/USD Daily Forecast – Euro Slowly Moves Higher Against U.S. Dollar

EUR/USD Video 17.11.20.

Euro Is Trying To Gain Additional Upside Momentum

EUR/USD is slowly moving towards the next resistance level at 1.1880 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index is currently testing the nearest support level at 92.50. If this test is successful, the U.S. Dollar Index will gain additional downside momentum which will be bullish for EUR/USD.

Yesterday, U.S. reported that NY Empire State Manufacturing Index declined from 10.50 in September to 6.30 in October. Today, foreign exchange market traders will focus on U.S. Retail Sales data for October.

Analysts expect that Retail Sales increased by 0.5% month-over-month. On a year-over-year basis, Retail Sales are projected to grow by 5.7%. The Retail Sales data will show whether consumer activity remained strong despite the recent coronavirus surge and may have a material impact on the currency market.

In addition to the Retail Sales report, U.S. will provide Industrial Production and Manufacturing Production reports for October. Both Industrial Production and Manufacturing Production are projected to grow by 1% on a month-over-month basis.

Technical Analysis

EUR/USD has managed to settle above the resistance at 1.1830 and is moving towards the next resistance level at 1.1880. Volatility decreased in recent trading sessions but the situation may change quickly if the U.S. Dollar Index settles below the support at 92.50 and heads towards the recent lows at 92.10.

In case EUR/USD manages to settle above the resistance at 1.1880, it will head towards the test of the major resistance level at November highs at 1.1910. A move above this level will push EUR/USD towards the next resistance at 1.1965.

On the support side, the nearest support level for EUR/USD is located at 1.1830. This support level has been tested during the previous trading session and proved its strength.

A move below the support at 1.1830 will open the way to the test of the next support level at the 20 EMA at 1.1805. In case EUR/USD declines below the 20 EMA, it will head towards the next support at the 50 EMA at 1.1780.

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