EUR/USD Daily Forecast – Support At 1.1300 In Sight

U.S. Dollar Gains Ground Against Euro

EUR/USD is slowly moving towards the support level at 1.1300 while U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index has once again managed to get back above the 96 level and is trying to develop additional upside momentum. In case this attempt is successful, it will get to the test of the resistance at 96.25 which will be bearish for EUR/USD.

The economic calendar is empty today, so foreign exchange market traders will focus on general market sentiment. It remains to be seen whether traders will be ready for significant moves in the last trading sessions of the year, although worries about the spread of coronavirus may provide some support to the safe-haven U.S. Dollar.

It should be noted that EUR/USD has been consolidating in December after a significant downside move which pushed it from 1.2250 in May to 1.1200 in November. While trading has been choppy in recent days, traders should expect more activity in the first weeks of 2022.

Technical Analysis

EUR/USD declined below the 20 EMA at 1.1315 and is trying to get to the test of the support at 1.1300. In case EUR/USD manages to settle below the support level at 1.1300, it will gain additional downside momentum and move towards the next support at 1.1270.

A move below the support at 1.1270 will push EUR/USD towards the support at 1.1230. If EUR/USD gets below this level, it will head towards the support at 1.1200.

On the upside, EUR/USD needs to get back above the 20 EMA to have a chance to gain upside momentum in the near term. If EUR/USD gets above this level, it will head towards the resistance at 1.1330. A successful test of the resistance at 1.1330 will push EUR/USD towards the next resistance level at 1.1350.

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