EUR/USD Daily Forecast – Resistance At 1.1750 Remains A True Wall On The Way Up

EUR/USD Video 02.10.20.

Euro Fails To Gain Additional Upside Momentum

EUR/USD continues its attempts to settle above the key resistance level at 1.1750. The news about Donald Trump’s positive COVID-19 test did not lead to increased buying of the safe-haven U.S. dollar, and the U.S. Dollar Index is mostly flat.

Currently, the U.S. Dollar Index remains between the support at the 20 EMA at 93.65 and the 50 EMA at 93.90. If the U.S. Dollar Index manages to settle below the support level at 93.65, EUR/USD will have a good chance to get above the resistance at 1.1750 and develop additional upside momentum.

Yesterday, EU reported that Euro Area Manufacturing PMI increased from 51.7 in August to 53.7 in September while Unemployment Rate increased from 8% in July (revised from 7.9%) to 8.1% in August.

Today, traders will have a chance to evaluate the latest inflation data for the Euro Area. Analysts expected that Inflation Rate was -0.2% year-over-year in September, while Core Inflation Rate was 0.5%.

Later, the market will focus on U.S. employment reports which include Non Farm Payrolls and Unemployment Rate for September.

Given the material amount of economic news that are due to be published today, EUR/USD traders should be prepared for a volatile trading day. Currently, the currency markets are undecided about their next move after the shocking news about Trump’s positive COVID-19 test, but the situation may change quickly.

Technical Analysis

EUR/USD did not manage to settle above the resistance at 1.1750 but continues to trade close to this level. If EUR/USD manages to settle above this important resistance level, it will gain upside momentum and head towards the next resistance level at 1.1830.

A move above 1.1830 will open the way to the test of the next resistance level at 1.1910.

On the support side, the nearest support for EUR/USD is still located at 1.1695. This support level has already been tested during today’s trading session. EUR/USD received material support at this level and quickly rebounded closer to the nearest resistance at 1.1750.

If EUR/USD manages to get below the support at 1.1695, it will gain downside momentum and head to the next support level at 1.1630.

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