EUR/USD Daily Forecast – Resistance At 1.2155 Remains A True Wall On The Way Up

EUR/USD Video 15.12.20.

U.S. Dollar Is Mostly Flat Against Euro

EUR/USD is trying to settle above the nearest resistance level at 1.2155 while the U.S. dollar remains mostly flat against a broad basket of currencies.

The U.S. Dollar Index is currently located near 90.70. It has been stuck in the range between 90.50 and 91 since early December, and it looks like foreign exchange market traders decided to wait for the U.S. Fed Interest Rate Decision which will be released on Wednesday before making any serious moves.

Yesterday, EU reported that Euro Area Industrial Production decreased by 3.8% in October compared to analyst consensus which called for a decline of 4.4%. On a month-over-month basis, Industrial Production increased by 2.1%.

Today, EUR/USD traders will focus on any Brexit updates that may emerge. EUR/USD is significantly less volatile than GBP/USD which actively reacts to any news on the Brexit front. However, EUR/USD should be able to gain material momentum once UK and EU announce final results of current negotiations.

In addition to Brexit and the upcoming Fed Interest Rate Decision, traders will wait for updates on U.S. stimulus negotiations. At this point, it looks like both parties are willing to reach a deal before the end of the year but markets would like to see tangible evidence of progress.

Technical Analysis

EUR/USD continues its attempts to settle above the nearest resistance level at 1.2155. A move above this level will push EUR/USD towards the next resistance at 1.2175. In case EUR/USD settles above the resistance at 1.2175, it will gain upside momentum and head towards the resistance at 1.2220.

Most likely, EUR/USD accumulated plenty of energy during the current consolidation phase so this move may be fast. In case EUR/USD gets above 1.2220, it will continue its upside move and head towards the resistance at 1.2250.

On the support side, the nearest support level for EUR/USD is located at 1.2110. In case EUR/USD declines below this level, it will get to the test of the next support at 1.2090. A move below the support at 1.2090 will push EUR/USD towards the next support level near the 20 EMA at 1.2060.

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