EUR/USD Daily Forecast – Test Of Resistance At 1.1560

Euro Rebounds After Yesterday’s Pullback

EUR/USD is currently trying to settle back above 1.1560 while the U.S. dollar is losing some ground against a broad basket of currencies.

The U.S. Dollar Index failed to get to the test of the resistance level at 94.50 and moved closer to the nearest support level at 94.20. If the U.S. Dollar Index declines below this level, it will move towards the next support at 94 which will be bullish for EUR/USD.

Today, foreign exchange market traders will have a chance to take a look at Euro Area Retail Sales report for September. Analysts expect that Euro Area Retail Sales grew by 0.3% month-over-month. On a year-over-year basis, Euro Area Retail Sales are projected to grow by 1.5%.

In the U.S., traders will focus on job market data. Non Farm Payrolls report is projected to show that the U.S. economy added 450,000 jobs in October. Unemployment Rate is projected to decline from 4.8% in September to 4.7% in October.

Technical Analysis

EUR/USD failed to settle below the support at 1.1540 and moved back towards the resistance level at 1.1560. Currently, EUR/USD is trying to settle back above this level. In case this attempt is successful, EUR/USD will move towards the next resistance at 1.1580.

A successful test of the resistance at 1.1580 will open the way to the test of the resistance which is located at the 20 EMA at 1.1600. If EUR/USD settles back above the 20 EMA at 1.1600, it will continue its rebound and head towards the next resistance level at 1.1630.

On the support side, EUR/USD needs to get back below 1.1560 to have a chance to develop downside momentum in the near term. The next support level for EUR/USD is located at 1.1540.

In case EUR/USD manages to settle below the support at 1.1540, it will gain additional upside momentum and head towards the next support which is located near the recent lows at 1.1525. A move below this level will push EUR/USD towards the support at 1.1500.

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