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EUR/USD Daily Forecast – Support At 1.1580 Stays Strong

By:
Vladimir Zernov
Published: Nov 3, 2021, 07:39 UTC

EUR/USD made an attempt to settle below the support at 1.1580 but failed to develop sufficient downside momentum.

EUR/USD

In this article:

Euro Gains Some Ground Against U.S. Dollar

EUR/USD is trading close to the support level at 1.1580 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index is slowly moving towards the nearest support level at 94. In case the U.S. Dollar Index declines below this level, it will head towards the next support at the 20 EMA at 93.85 which will be bullish for EUR/USD.

Today, foreign exchange market traders will take a look at ADP Employment Change report which is expected to show that U.S. private businesses hired 400,000 workers in October.

Traders will also focus on the final reading of U.S. Services PMI report which is expected to indicate that Services PMI increased from 54.9 in September to 58.2 in October.

While the reports may have some impact on market mood, the main event of the day is the Fed decision. The Fed is expected to announce that it will reduce its asset purchase program. While the start of tapering should have been already priced in by markets, traders will pay close attention to Fed’s commentary. If the central bank focuses on inflation, the U.S. dollar may get more support.

Technical Analysis

eur usd november 3 2021

EUR/USD did not manage to settle below the support level at 1.1580 but stays close to this level. In case EUR/USD declines below 1.1580, it will move towards the next support level which is located at 1.1560.

A successful test of the support at 1.1560 will push EUR/USD towards the support at 1.1540. If EUR/USD gets below this level, it will move towards the support at October lows at 1.1525.

On the upside, the nearest resistance level for EUR/USD is located at the 20 EMA at 1.1605. If EUR/USD settles above the 20 EMA, it will move towards the resistance at 1.1630. A successful test of the resistance level at 1.1630 will open the way to the test of the next resistance level which is located at the 50 EMA at 1.1650.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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