EUR/USD Daily Forecast – Resistance At 1.1300 In Sight

Euro Moves Higher Against U.S. Dollar

EUR/USD is currently trying to get to the test of the resistance level at 1.1300 while U.S. dollar is losing some ground against a broad basket of currencies.

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

Today, foreign exchange market traders will focus on the flash reading of Euro Area Consumer Confidence report for December. Analysts expect that Euro Area Consumer Confidence declined from -6.8 in November to -8 in December.

It looks that analyst consensus is somewhat optimistic as the spread of Omicron and the discussions about restrictions on Christmas may have put significant pressure on Euro Area Consumer Confidence. At the same time, it remains to be seen whether markets will be sensitive to preliminary data on Euro Area Consumer Confidence as trading volume declines ahead of Christmas.

Technical Analysis

EUR/USD settled above the resistance at 1.1270 and is trying to get above the next resistance which is located near the 20 EMA at 1.1300. In case EUR/USD manages to settle above the 20 EMA, it will head towards the next resistance level at 1.1330.

A successful test of the resistance at 1.1330 will push EUR/USD towards the resistance at 1.1350. In case EUR/USD gets above 1.1350, it will head towards the next resistance level at 1.1370.

On the support side, the previous resistance at 1.1270 will serve as the first support level for EUR/USD. If EUR/USD declines below this level, it will head towards the next support at 1.1230. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge. If EUR/USD manages to settle below the support level at 1.1230, it will head towards the support which is located near November lows at 1.1200.

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