EUR/USD Daily Forecast – Resistance At 1.2155 In Sight

EUR/USD Video 03.12.20.

Euro Continues To Move Higher

EUR/USD managed to settle above the resistance at 1.2090 and is moving towards the next resistance level at 1.2155 while the U.S. dollar remains under significant pressure on the foreign exchange market.

The U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, managed to get below the 91 level and is moving towards the next support at 90.60. If the U.S. Dollar Index gets to the test of the support at 90.60, EUR/USD will get an additional boost.

Yesterday, EU reported that Euro Area Unemployment Rate decreased from 8.5% in September (revised from 8.3%) to 8.4% in October, in line with analyst estimates. Unemployment Rate settled at high levels due to the negative impact of the pandemic, and it remains to be seen whether EU will be able to achieve any material progress on this front during winter months.

Today, EU will provide the final reading of Euro Area Services PMI report which is projected to show that Services PMI decreased from 46.9 in October to 41.3 in November.

In addition, traders will take a look at Euro Area Retail Sales data for October. Analysts expect that Retail Sales increased by 0.8% month-over-month after falling by 2% in September. On a year-over-year basis, Retail Sales are projected to grow by 2.7%.

Technical Analysis

EUR/USD is moving so fast that’s it’s high time to take a look at the weekly chart to evaluate the big picture.

At this point, EUR/USD managed to get above the resistance at 1.2090 and is moving towards the next resistance level at 1.2155. If EUR/USD manages to settle above this level, it will head towards the next resistance at 1.2220.

A successful test of this resistance level will push EUR/USD towards the resistance at 1.2250. This level has served as a major support level for EUR/USD in early 2018, and I’d expect a lot of interest from traders if EUR/USD gets to the test of this level.

On the support side, the previous resistance at 1.2090 will likely serve as the first support level for EUR/USD. A move below this level will push EUR/USD towards the next support at 1.2000.

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