EUR/USD Daily Forecast – U.S. Dollar Moves Higher Against Euro

Euro Declines Against U.S. Dollar

EUR/USD is currently trying to settle below the support at 1.1300 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index has recently made another attempt to settle above the resistance level at 96.25 but failed to develop sufficient upside momentum. In case the U.S. Dollar Index manages to settle above this level, it will move towards 96.50 which will be bearish for EUR/USD.

Today, U.S. will release Pending Home Sales report which is expected to show that Pending Home Sales increased by 0.5% month-over-month in November.

Foreign exchange market traders will also focus on general market sentiment. In recent weeks, the U.S. Dollar Index has been consolidating in the 96 – 96.50 range, and it looks that it may be ready for the next big move when most traders get back to their desks after holidays.

Technical Analysis

EUR/USD settled below the 20 EMA at 1.1310 and is testing the support level at 1.1300. In case EUR/USD manages to settle below this level, it will head towards the next support which is located at 1.1270.

A move below the support at 1.1270 will push EUR/USD towards the next support level at 1.1230. The test of support at 1.1230 will be an important event for EUR/USD. If EUR/USD declines below this level, it may gain significant downside momentum and quickly get to the test of the next support at 1.1200.

On the upside, the previous support at the 20 EMA will serve as the first resistance level for EUR/USD. In case EUR/USD settles back above the 20 EMA, it will head towards the resistance at 1.1330.

A move above 1.1330 will push EUR/USD towards the resistance at 1.1350. In case EUR/USD gets above the resistance at 1.1350, it will move towards the 50 EMA which is located at 1.1365.

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