EUR/USD Daily Forecast – Test Of Resistance At 1.1450

U.S. Dollar Is Under Pressure Against Euro

EUR/USD is currently trying to settle back above the resistance at 1.1450 while the U.S. dollar is under pressure against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get below the 95 level and is trying to develop additional downside momentum. In case this attempt is successful, the U.S. Dollar Index will move towards the support level at 94.75 which will be bullish for EUR/USD.

Today, foreign exchange market traders had a chance to take a look at the latest economic data from China which provided support to riskier assets. China’s Retail Sales increased by 4.9% year-over-year in October compared to analyst consensus which called for growth of just 3.5%. China’s Industrial Production grew by 3.5% year-over-year compared to analyst consensus of 3%.

In the U.S., traders will focus on NY Empire State Manufacturing Index report which is projected to show that NY Empire State Manufacturing Index increased from 19.8 in October to 21.6 in November.

Technical Analysis

EUR/USD is testing the resistance level at 1.1450. In case this test is successful, EUR/USD will move towards the next resistance which is located at 1.1475.

A move above the resistance at 1.1475 will push EUR/USD towards the resistance level at 1.1500. If EUR/USD manages to settle above this level, it will head towards the resistance at 1.1525. A successful test of this level will open the way to the test of the resistance at the 20 EMA at 1.1540.

On the support side, EUR/USD needs to get back below 1.1450 to have a chance to develop downside momentum in the near term. The next support level for EUR/USD is located at 1.1425.

In case EUR/USD manages to settle below the support at 1.1425, it will head towards the support at 1.1400. A move below this level will push EUR/USD towards the next support level which is located at 1.1370.

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