EUR/USD Daily Forecast – Euro Tries To Continue Its Upside Move

EUR/USD Video 20.10.20.

U.S. Dollar Remains Under Pressure Against Euro

EUR/USD has managed to settle above the resistance at 1.1750 and is trying to get above the next resistance at 1.1780 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index has managed to settle below the 20 EMA at 93.55 on hopes for a new U.S. stimulus package. While the stock market has abandoned such hopes and finished yesterday’s trading session deep in the red zone, currency traders are more optimistic so the U.S. dollar is not able to develop upside momentum.

The nearest support level for the U.S. Dollar Index has emerged near 93.25. In case the U.S. Dollar Index manages to settle below this level, EUR/USD will have good chances to gain additional upside momentum and settle above 1.1800.

Just like the British pound, EUR/USD will remain sensitive to Brexit news. At this point, EU and Britain blame each other for the lack of progress in negotiations. The market believes that both sides are bluffing and that they will ultimately reach a compromise deal.

If this does not happen, EUR/USD may find itself under material pressure as a no-deal Brexit will present an additional problem for the European economy which is currently suffering from the second wave of the virus.

Technical Analysis

EUR/USD continues its attempts to settle above the nearest resistance level at 1.1780. In case EUR/USD manages to get above this level, it will gain additional upside momentum and head towards the next resistance at October highs at 1.1830.

A move above 1.1830 will signal that EUR/USD is ready to move higher. In this case, EUR/USD will have to deal with the resistance at 1.1870 on the way to the major resistance level at 1.1910.

On the support side, the previous resistance at 1.1750 will likely serve as the first support level for EUR/USD. If EUR/USD settles below this level, it will decline towards the next support at 1.1720. A move below the support at 1.1720 will open the way to the test of the next support level at 1.1695.

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