EUR/USD Daily Forecast – Resistance At 1.1880 Remains A Wall

EUR/USD Video 23.11.20.

Euro Tries To Gain Upside Momentum At The Start Of The Week

EUR/USD is still trying to get above the nearest resistance level at 1.1880 while the U.S. dollar is losing ground against a broad basket of currencies.

The American currency is under pressure on the foreign exchange market at the beginning of the week, and the U.S. Dollar Index is trying to get to the test of the nearest support level at 92.10. A move below this level will push the U.S. Dollar Index towards the next support at the yearly lows at 91.75 which will be bullish for EUR/USD.

Today, EU will provide Euro Area flash PMI data for November. Analysts expect that Manufacturing PMI declined from 54.8 in October to 53.1 in November. Meanwhile, Services PMI is projected to drop from 46.9 to 42.5. Numbers below 50 show contraction.

It is clear that new lockdowns put serious pressure on the services sector but traders will be especially interested in the magnitude of the decline in Euro Area Services PMI.

EUR/USD traders will also wait for any news on the Brexit front. At this point, the market believes that EU and UK will be able to reach a compromise deal, but this optimism has failed to push EUR/USD above the resistance at 1.1880.

Technical Analysis

EUR/USD continues its attempts to settle above the nearest resistance level at 1.1880. This resistance level has already been tested many times and proved its strength.

If EUR/USD gets above the resistance at 1.1880, it will have to deal with another significant resistance level at 1.1910.

In case EUR/USD manages to settle above the resistance at 1.1910, it will gain upside momentum and head towards the next resistance at 1.1965. A successful test of the resistance at 1.1965 will push EUR/USD towards the next resistance at 1.2000.

On the support side, the nearest support level is located at the 20 EMA at 1.1830. A move below this level will open the way to the test of the next support level at the 50 EMA at 1.1800.

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