EUR/USD Daily Forecast – Test Of Resistance At 1.1300

Euro Gains Ground Against U.S. Dollar

EUR/USD is moving towards the resistance level at 1.1300 while U.S. dollar is losing some ground against a broad basket of currencies.

The U.S. Dollar Index is trying to settle below the support level at 96.25. In case the U.S. Dollar Index manages to settle below this level, it will gain additional downside momentum and move towards the support at 96 which will be bullish for EUR/USD.

Today, foreign exchange market traders will focus on the economic data from EU. Analysts expect that the third estimate of the third-quarter Euro Area GDP Growth Rate report will show that Euro Area GDP increased by 2.2% on a quarter-over-quarter basis.

Euro Area ZEW Economic Sentiment Index is projected to decline from 25.9 in November to 23.2 in December. This report is especially interesting as it will show whether recent developments on the coronavirus front had a material impact on economic sentiment in the Euro Area.

Technical Analysis

EUR/USD failed to settle below the support level at 1.1270 and is trying to get above the nearest resistance level at 1.1300. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

If EUR/USD manages to settle above 1.1300, it will move towards the next resistance near the 20 EMA at 1.1325. A successful test of the resistance at the 20 EMA will open the way to the test of the next resistance level at 1.1350. In case EUR/USD settles above the resistance at 1.1350, it will continue its rebound and head towards the resistance at 1.1370.

On the support side, the nearest support level for EUR/USD is located at 1.1270. If EUR/USD declines below the support at 1.1270, it will head towards the next support which is located at 1.1230. A successful test of this support level will push GBP/USD towards the support at 1.1200.

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