EUR/USD Daily Forecast – Support At 1.1720 In Sight

EUR/USD Video 15.10.20.

Euro Remains Under Pressure Against U.S. Dollar

EUR/USD has managed to settle below the key support level at 1.1750 and tries to gain more downside momentum as the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index is currently trying to gain upside momentum above the nearest resistance level at the 20 EMA at 93.50. If this attempt is successful, the U.S. Dollar Index will move towards the 50 EMA at 93.75. This scenario will be bearish for EUR/USD.

In the upcoming days, EUR/USD traders will be focused on Brexit-related news. Yesterday, GBP/USD received strong support as the market decided that chances of a deal between EU and UK increased.

Interestingly, EUR/USD did not enjoy much support despite the fact that a Brexit deal would be a positive catalyst for the European economy. I’d note that the fate of Brexit negotiations is completely uncertain so EUR/USD will likely remain volatile in the upcoming trading sessions.

In addition to Brexit news, EUR/USD traders will also pay attention to the latest U.S. employment data which will be published today. Initial Jobless Claims are expected to decline from 840,000 to 825,000 while Continuing Jobless Claims are projected to drop from 10.98 million to 10.7 million.

Technical Analysis

EUR/USD is trading below 1.1750 and tries to develop additional downside momentum. The nearest support level for EUR/USD has emerged at 1.1720.

If EUR/USD manages to settle below this level, it will move towards the next support level at 1.1695. A move below 1.1695 will signal that the current rebound attempt has come to an end. In this case, EUR/USD will decline towards the support near September lows at 1.1630.

On the upside, EUR/USD needs to get above 1.1750 to have a chance to develop upside momentum. EUR/USD will also face resistance at the 20 EMA which has declined to 1.1760.

If EUR/USD settles above the 20 EMA, it will move towards a minor resistance level at 1.1780. In case EUR/USD gets above the resistance at 1.1780, it will gain additional upside momentum and head towards the next resistance at the recent highs at 1.1830.

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