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EUR/USD Daily Forecast – Test Of Support At 1.2090

By:
Vladimir Zernov
Published: Dec 10, 2020, 07:54 UTC

EUR/USD continues its attempts to settle below the nearest support level at 1.2090.

EUR/USD

In this article:

EUR/USD Video 10.12.20.

U.S. Dollar Is Trying To Gain More Ground Against Euro

EUR/USD is currently testing the nearest support level at 1.2090 while the U.S. dollar is flat against a broad basket of currencies.

Currently, the U.S. Dollar Index is trying to gain upside momentum above the 91 level. If this attempt is successful, the U.S. Dollar Index will head towards 91.50 which will be bearish for EUR/USD.

Today, foreign exchange market traders will focus on the European Central Bank Interest Rate Decision. The rate is expected to stay unchanged but traders will wait for additional commentary on the pace of asset purchases.

In addition, the ECB may also address the strength of the euro as the recent rally puts European exporters under additional pressure at a time when the European economy struggles with the second wave of the virus.

In the U.S., traders will focus on inflation data for November. Inflation Rate is expected to increase by 1.1% year-over-year while Core Inflation Rate is projected to grow by 1.6%.

Traders will also pay close attention to any news on the Brexit front. EU and UK negotiators must reach a deal before the end of the week or financial markets will have to face a no-deal Brexit.

Technical Analysis

eur usd december 10 2020

EUR/USD is trying to settle below the nearest support level at 1.2090. Yesterday, EUR/USD made an attempt to gain downside momentum below 1.2090 but received support near 1.2060 and rebounded back to 1.2090.

If EUR/USD settles below the support at 1.2090, it will head towards the next support level which has emerged at 1.2060. A move below 1.2060 will open the way to the test of the support at the 20 EMA at 1.2010.

In case EUR/USD declines below the 20 EMA at 1.2010, it will head towards the support at 1.1965.

On the upside, EUR/USD needs to stay above the support at 1.2090 to have a chance to develop upside momentum. The next resistance level for EUR/USD is located at 1.2155. A move above this level will push EUR/USD towards the recent highs at 1.2175.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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