Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Vladimir Zernov

EUR/USD Video 09.09.20.


Euro Continues To Lose Ground

EUR/USD is trying to settle below the support level at 1.1765 as the U.S. dollar continues to gain ground against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get above 93.50 and is trying to gain more upside momentum. The continued sell-off in GBP/USD is playing a major role in the current U.S. dollar strength.

The next resistance level for the U.S. Dollar Index is located at the 50 EMA at 94.10. A move towards this level will be bearish for EUR/USD.

Yesterday, EU reported the third estimate of its second-quarter GDP Growth Rate. GDP declined by 11.8% on a quarter-over-quarter basis, compared to analyst consensus which called for a decline of 12.1%. On a year-over-year basis, GDP declined by as much as 14.7%.

Meanwhile, Employment Change report indicated that employment declined by 2.9% in the second quarter on a quarter-over-quarter basis.

The economic data from Euro Area remains mostly grim so traders will be waiting for clues about additional stimulus when the European Central Bank announces its Interest Rate Decision on Thursday.

While the rate is expected to stay unchanged at 0%, ECB may follow U.S. Fed’s example and promise to push inflation above 2% in order to support the economic recovery. This scenario would be bearish for EUR/USD.

Technical Analysis

Currently, EUR/USD is testing the nearest support level at 1.1765. If this test is successful, EUR/USD will gain more downside momentum and head towards the next support level at the 50 EMA at 1.1725.

RSI is still in the moderate territory so there is plenty of room to gain more momentum in case the right catalysts emerge. A move below the 50 EMA at 1.1725 will open the way to the test of the next support level at 1.1665.

On the upside, the nearest resistance for EUR/USD is located at the 20 EMA at 1.1825. A move above the 20 EMA will signal that EUR/USD is ready to get back to the upside mode so I’d expect a lot of interest from traders in case EUR/USD gets to the test of this level.

In case EUR/USD manages to settle above the 20 EMA, it will gain more upside momentum and head towards the next resistance at 1.1910.

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

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.