EUR/USD Daily Forecast – Resistance At 1.1910 In Sight

EUR/USD Video 09.11.20.

Euro Continues To Move Higher Against U.S. Dollar

EUR/USD is trying to get to the test of the major resistance level at 1.1910 while the U.S. dollar continues to lose ground against a broad basket of currencies.

The U.S. Dollar Index is currently trying to get below the nearest support level at 92.10. If this attempt is successful, the U.S. Dollar Index will move towards the next support at the yearly lows at 91.75 which will be bullish for EUR/USD.

There are no important economic reports scheduled to be released in the U.S. and EU today so EUR/USD trading dynamics will depend on general market sentiment. In addition, EUR/USD traders will watch out for any Brexit news since EU and UK has just entered their final week of Brexit negotiations.

Tomorrow, EU will provide the latest Economic Index Sentiment for the Euro Area. The Economic Index Sentiment is projected to drop from 52.3 in October to 36 in November due to the second wave of coronavirus in Europe. At this point, the only question is the magnitude of the drop.

Technical Analysis

EUR/USD has managed to get above the resistance at 1.1880 and is trying to get to the test of the major resistance level at 1.1910. If EUR/USD settles above the resistance at 1.1910, it will gain additional upside momentum and head towards the resistance at 1.1965.

A move above the resistance at 1.1965 will open the way to the test of the next resistance at the yearly highs at 1.2000. Most likely, EUR/USD will face significant resistance at this psychologically important level.

If EUR/USD manages to settle above this level, it will have a chance to establish a material upside trend after a period of mostly range-bound trading.

On the support side, the previous resistance at 1.1880 will likely serve as the first support level for EUR/USD. If EUR/USD moves below this level, it will head towards the next support at 1.1830. A move below 1.1830 will open the way to the test of the next support at the 20 EMA at 1.1785.

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