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

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.

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

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.

Technical Analysis

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.

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.