EUR/USD Daily Forecast – Test Of Resistance At 1.1595

Euro Gains Ground Against U.S. Dollar

EUR/USD is currently trying to settle above the 20 EMA at 1.1595 while the U.S. dollar is under pressure against a broad basket of currencies.

The U.S. Dollar Index declined below the support at the 94 level and is trying to develop additional downside momentum. In case this attempt is successful, it will move towards the next support at 93.75 which will be bullish for EUR/USD.

Today, foreign exchange market traders will have a chance to take a look at Euro Area ZEW Economic Sentiment Index for November. Analysts expect that Euro Area ZEW Economic Sentiment Index declined from 21 in October to 18.5 in November.

In the U.S., traders will focus on Producer Prices data for October which will show whether the Fed’s dovish tone is justified. Analysts expect that Producer Prices grew by 0.6% on a month-over-month basis. On a year-over-year basis, Producer Prices are projected to increase by 8.7%.

Technical Analysis

EUR/USD is testing the resistance level at the 20 EMA at 1.1595. In case this test is successful, EUR/USD will get to the test of the next resistance which is located at 1.1610. 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 the resistance at 1.1610, it will head towards the next resistance at 1.1630. A move above this level will lead to the test of the resistance at the 50 EMA at 1.1640. In case EUR/USD gets above the 50 EMA, it will head towards the resistance at 1.1660.

On the support side, the nearest support level for EUR/USD is located at 1.1580. If EUR/USD declines below this support level, it will move towards the next support at 1.1560. A successful test of the support at 1.1560 will push EUR/USD towards the next support at 1.1540.

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