EUR/USD Daily Forecast – Euro Tests The Major Resistance Level
EUR/USD Video 25.11.20.
U.S. Dollar Remains Under Pressure
EUR/USD is testing the major resistance level at 1.1910 while the U.S. dollar remains under pressure against a broad basket of currencies.
The U.S. Dollar Index continues its attempts to settle below the support at 92.10. If the U.S. Dollar Index declines below this support level, it will gain significant downside momentum which will be bullish for EUR/USD.
Today, foreign exchange market traders will focus on economic reports from the U.S. There will be plenty of news to digest as many reports were shifted to Wednesday due to the upcoming Thanksgiving holiday.
Traders will pay special attention to employment reports as they will show whether the second wave of the virus puts serious pressure on the job market.
The previous Initial Jobless Claims report was disappointing, and it remains to be seen whether the number of Americans filing for unemployment benefits will start to decline again.
EUR/USD gained some upside momentum and is trying to settle above the resistance area at 1.1880 – 1.1910. This resistance area has already been tested many times and proved its strength.
However, it looks like EUR/USD has a good chance to get above 1.1910 as the U.S. Dollar Index is very close to a move below the key support at 92.10.
If EUR/USD manages to settle above 1.1910, it will gain strong upside momentum and head towards the next resistance level at 1.1965. A move above 1.1965 will open the way to the psychologically important resistance level at 1.2000.
On the support side, EUR/USD needs to get below 1.1880 to have a chance to develop downside momentum. If EUR/USD settles below 1.1880, it will decline towards the next support level which is located at the 20 EMA at 1.1840.
In case EUR/USD manages to settle below the support at the 20 EMA, it will continue its downside move and head towards the next support at the 50 EMA near 1.1800.
For a look at all of today’s economic events, check out our economic calendar.