EUR/USD Daily Forecast – Test Of Support At 1.1450

Euro Is Mostly Flat Against U.S. Dollar Ahead Of The Weekend

EUR/USD is currently trying to settle below the support level at 1.1450 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index is testing the resistance level at 95.20. A move above this level will open the way to the test of the next resistance at 95.40 which will be bearish for EUR/USD.

Today, foreign exchange market traders will have a chance to take a look at Euro Area Industrial Production report for September. Analysts expect that Euro Area Industrial Production declined by 0.5% month-over-month after falling by 1.6% in August. On a year-over-year basis, Euro Area Industrial Production is projected to increase by 4.1%.

In the U.S., traders will focus on Michigan Consumer Sentiment report which is projected to show that Consumer Sentiment increased from 71.7 in October to 72.4 in November. This report may have a material impact on currency dynamics, although it remains to be seen whether traders are ready for big moves ahead of the weekend.

Technical Analysis

EUR/USD continues its attempts to settle below the support level at 1.1450. In case EUR/USD manages to settle below this level, it will move towards the next support at 1.1425.

A successful test of the support at 1.1425 will push EUR/USD towards the next support level which is located at 1.1400. In case EUR/USD declines below the support at 1.1400, it will move towards the support level at 1.1370.

On the upside, EUR/USD needs to settle back above 1.1450 to have a chance to develop upside momentum in the near term. The next resistance level for EUR/USD is located at 1.1475.

In case EUR/USD settles above the resistance at 1.1475, it will head towards the resistance which is located at 1.1500. A successful test of the resistance level at 1.1500 will open the way to the test of the next resistance level at 1.1525.

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