Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Vladimir Zernov

EUR/USD Video 30.10.20.


Euro Continues To Lose Ground Against U.S. Dollar

EUR/USD has managed to get below the support at 1.1695 and is trying to develop additional downside momentum while the U.S. dollar is flat against a broad basket of currencies.

Know where EUR/USD is headed? Take advantage now with 

75% of retail CFD investors lose money

Yesterday, the European Central Bank left the interest rate unchanged but promised to provide additional support at the next meeting. ECB President Christine Lagarde stated that the Bank was working on all instruments. Most likely, the ECB will expand its Pandemic Emergency Purchase Programme (PEPP) in December.

Not surprisingly, the prospect of further easing put pressure on EUR/USD which declined below the important support level at 1.1695. In addition, the euro is pressured by the challenging situation with the virus in Europe.

Today, EU will provide Euro Area GDP Growth Rate report for the third quarter. Analysts expect that third-quarter GDP will grow by 9.4% quarter over quarter after falling by 11.8% in the previous quarter.

Euro Area Unemployment Rate is projected to increase from 8.1% to 8.3% in September. Inflation Rate is expected to be -0.3% on a year-over-year basis in October, while Core Inflation Rate is expected to grow by 0.2%.

Technical Analysis

EUR/USD settled below the major support level at 1.1695 and is trying to get to the test of the next support level at 1.1630. RSI is still in the moderate territory so there is plenty of room to gain downside momentum in case the right catalysts emerge.

If EUR/USD manages to settle below the support at 1.1630, it will head towards the next support level at 1.1580. A move below 1.1580 will open the way to the test of the next support at 1.1540.

I’d note that there are no major support levels between 1.1630 and 1.1500 so EUR/USD may quickly move between levels if it gets below 1.1630.

On the upside, the previous support at 1.1695 will likely serve as the first resistance level for EUR/USD. If EUR/USD settles above this level, it will head towards the resistance at 1.1720.  A move above the resistance at 1.1720 will open the way to the test of the major resistance area between 1.1750 and the 20 EMA at 1.1765.

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

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.