EUR/USD Daily Forecast – U.S. Dollar Remains Under Some Pressure

EUR/USD Video 20.11.20.

Euro Gains Ground Against U.S. Dollar Ahead Of The Weekend

EUR/USD is once again testing the resistance at 1.1880 while the U.S. dollar is moving lower against a broad basket of currencies.

The U.S. Dollar Index gained downside momentum and is trying to get to the test of the nearest support level at 92.10. If the U.S. Dollar Index settles below this level, it will head towards the next support at the yearly lows at 91.75 which will be bullish for EUR/USD.

Yesterday, U.S. reported that Initial Jobless Claims increased to 742,000 while Continuing Jobless Claims declined to 6.37 million. The increase of Initial Jobless Claims indicated that the job market recovery has stalled, and the American currency faced additional pressure on the foreign exchange market.

Today, EU will provide the flash reading of the Consumer Confidence report for November. Consumer Confidence is expected to decline from -15.5 in October to -17.7 in November due to the negative impact of European lockdowns.

Traders will also wait for additional news on the U.S. stimulus front. Republicans and Democrats have reportedly agreed to resume negotiations. Meanwhile, U.S. Treasury Secretary Steven Mnuchin stated that some pandemic lending programs would expire at the end of the year.

Technical Analysis

EUR/USD continues its attempts to settle above the nearest resistance level at 1.1880. In case EUR/USD manages to get above this level, it will head towards the major resistance level at 1.1910.

A successful test of the resistance at 1.1910 will open the way to the test of the next resistance at 1.1965. If EUR/USD settles above the resistance at 1.1965, it will move towards the psychologically important resistance level at September highs at 1.2000.

On the support side, the nearest support level for EUR/USD is located at 1.1830. If EUR/USD declines below this level, it will head towards the next support level at 1.1800 although it may also get some support at the 20 EMA at 1.1820. In case EUR/USD gets below the support at 1.1800, it will test the 50 EMA at 1.1790.

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