EUR/USD Daily Forecast – Resistance At 1.1270 In Sight

Euro Tries To Rebound Against U.S. Dollar

EUR/USD is moving towards the resistance level at 1.1270 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get back below 96.50 and is trying to develop additional downside momentum. In case this attempt is successful, the U.S. Dollar Index will get to the test of the next support at 96.25 which will be bullish for EUR/USD.

Today, foreign exchange market traders will focus on PMI data from EU. Analysts expect that Euro Area Manufacturing PMI declined from 58.3 in October to 57.3 in November. Euro Area Services PMI is projected to decrease from 54.6 in October to 53.5 in November.

It remains to be seen whether the decline in Euro Area Services PMI will be limited. Austria has already imposed a full lockdown, while other European countries have introduced additional virus containment measures. The situation with coronavirus is clearly developing in the wrong direction, and the services segment will likely take a hit.

Technical Analysis

EUR/USD is currently trying to get to the test of the resistance level which is located at 1.1270. In case this attempt is successful, EUR/USD will move towards the resistance at 1.1300. RSI remains in the oversold territory, and there is plenty of room to gain upside momentum in case the right catalysts emerge.

A successful test of the resistance at 1.1300 will open the way to the test of the next resistance level at 1.1325. In case EUR/USD manages to settle above 1.1325, it will continue its rebound and head towards the resistance level at 1.1350.

On the support side, the nearest support level for EUR/USD is located at 1.1230. In case EUR/USD declines below this level, it will head towards the support at 1.1200. A move below the support at 1.1200 will push EUR/USD towards the next support at 1.1170.

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