EUR/USD Daily Forecast – Resistance At 1.1695 In Sight

EUR/USD Video 25.09.20.

All Eyes On U.S. Durable Goods Orders Report

EUR/USD is mostly flat ahead of the weekend as the U.S. dollar is little changed against a broad basket of currencies.

The U.S. Dollar Index has settled near 94.30 after an unsuccessful attempt to get to the test of the significant resistance level at 94.65.

This week was very successful for the American currency so some pullback is possible. That said, RSI of the U.S. Dollar Index has not reached the overbought territory so there is more room to gain upside momentum in case the right catalysts emerge.

Today, traders will focus on U.S. Durable Goods Orders report. Analysts expect that Durable Goods Orders grew by 1.5% month-over-month in August after growth of 11.2% in July. Excluding transportation, Durable Goods Orders are projected to grow by 1.2%.

Any weakness in Durable Goods Orders will likely be interpreted as a sign of a slowdown in the U.S. economy. In recent days, the U.S. dollar received support on worries about the pace of the economic recovery, so weak Durable Goods Orders may provide some support to the American currency in case traders continue to use it as a safe have asset of last resort.

Technical Analysis

EUR/USD is currently trading in a range between support at 1.1630 and resistance at 1.1695.

If EUR/USD manages to settle below the support at 1.1630, it will gain additional downside momentum and head towards the next support level at 1.1600. A move below the support at 1.1600 will open the way to the test of the next support level at 1.1540. The moves between these support levels may be fast since these levels served as minor obstacles on the way up back in July.

On the upside, EUR/USD will have to get back above the resistance at 1.1695 to continue its rebound from the support at 1.1630. If this happens, EUR/USD will head towards the significant resistance level at the 50 EMA at 1.1745.

In case EUR/USD moves above the 50 EMA, it will gain more upside momentum and get to the test of the next resistance level at the 20 EMA at 1.1780.

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