EUR/USD Daily Forecast – Support At 1.1780 In SightEUR/USD gained downside momentum and is trying to settle below 1.1800.
EUR/USD Video 23.10.20.
Euro Loses Ground Against U.S. Dollar
EUR/USD attempts to settle below 1.1800 as the U.S. dollar continues to rebound against a broad basket of currencies.
75% of retail CFD investors lose money
The U.S. Dollar Index managed to gain some upside momentum amid concerns that the new U.S. coronavirus aid package would not be negotiated before the November election. Currently, the U.S. Dollar Index is trying to settle above the resistance at the 93 level. If this attempt is successful, the American currency will gain additional upside momentum which will be bearish for EUR/USD.
Yesterday, U.S. reported that Initial Jobless Claims decreased from 842,000 (revised from 898,000) to 787,000 while Continuing Jobless Claims declined from 9.4 million (revised from 10.02 million) to 8.37 million. The data pointed to the continued recovery of the job market although it is clear that additional stimulus is still required to support the economy.
EUR/USD traders will soon have a chance to evaluate the flash PMI data for Euro Area. Manufacturing PMI is projected to decline from 53.7 in September to 53.1 in October while Services PMI is expected to decrease from 48 to 47. Numbers below 50 show contraction.
The weakness of the services segment is not surprising given the current problems with coronavirus in Europe, and the only question is the pace of contraction of Services PMI.
EUR/USD continues to lose ground and is trying to settle below 1.1800. The nearest support level for EUR/USD is located near the 20 EMA at 1.1780. If EUR/USD declines below this level, it will gain additional downside momentum and head towards the major support level near the 50 EMA at 1.1750.
A move below the support at 1.1750 will push EUR/USD towards the next material support level at 1.1695 although it may also receive some support near 1.1720.
On the upside, EUR/USD needs to stay above 1.1800 to have a chance to gain upside momentum in the near term. The nearest resistance level for EUR/USD is located at 1.1830.
A move above this level will open the way to the test of the next resistance near the recent highs at 1.1870. In case EUR/USD moves above this level, it will head towards the major resistance at 1.1910.
For a look at all of today’s economic events, check out our economic calendar.