EUR/USD Daily Forecast – Euro Stays Range-Bound

Euro Declines Against U.S. Dollar

EUR/USD is currently trying to settle back below the 20 EMA at 1.1315 while U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index moved back above the 96 level and is heading towards the resistance level at 96.25. In case the U.S. Dollar Index gets back above this level, it will head towards the next resistance at 96.50 which will be bearish for EUR/USD.

Today, U.S. will release Initial Jobless Claims report which is expected to show that 208,000 Americans filed for unemployment benefits in a week.

It remains to be seen whether this report will have a material impact on EUR/USD dynamics as market activity will be slowing down in the last days of the year. Most likely, EUR/USD will continue to move back and forth around recent levels as traders wait for the beginning of 2022.

Technical Analysis

EUR/USD did not manage to settle above the resistance level at 1.1350 and moved below the support level at 1.1330. Currently, EUR/USD is trying to get below the next support level which is located at the 20 EMA at 1.1315. This is a minor suppor level as EUR/USD has easily moved through the 20 EMA in recent trading sessions.

A move below the 20 EMA will push EUR/USD back to the support at 1.1300. If EUR/USD declines below this level, it will head towards the next support at 1.1270. A successful test of this support level will push EUR/USD towards the significant support level at 1.1230.

On the upside, the previous support level at 1.1330 will serve as the first resistance level for EUR/USD. A move above this level will provide EUR/USD with an opportunity to get to another test of the next resistance at 1.1350. If EUR/USD manages to settle above the resistance at 1.1350, it will move towards the resistance level at the 50 EMA at 1.1365.

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