EUR/USD Daily Forecast – U.S. Dollar Stays Under Some Pressure Against Euro

Euro Gains Some Ground Against U.S. Dollar

EUR/USD is currently trying to settle back above the resistance at 1.1330 while U.S. dollar is losing some ground against a broad basket of currencies.

The U.S. Dollar Index is currently trying to get below the support at 96. In case the U.S. Dollar Index settles below this support level, it will head towards the next support at 95.75 which will be bullish for EUR/USD.

There are no important economic reports scheduled to be released in the EU today so foreign exchange market traders will focus on the economic data from U.S.

Traders will likely focus on consumer-related reports which will show how consumers reacted to the recent developments in the economy. Analysts expect that Personal Income increased by 0.4% month-over-month in November after growing by 0.5% in October. Personal Spending is projected to grow by 0.6% in November after increasing by 1.3% in October. The final reading of Michigan Consumer Sentiment report is expected to show that Consumer Sentiment rebounded from 67.4 in November to 70.4 in December.

Technical Analysis

EUR/USD continues its attempts to settle above the resistance at 1.1330. In case EUR/USD manages to settle above this level, it will move towards the next resistance at 1.1350.

A move above the resistance at 1.1350 will push EUR/USD towards the next resistance which is located at the 50 EMA at 1.1370. If EUR/USD moves above the resistance at the 50 EMA, it will gain additional upside momentum and head towards the next resistance level at 1.1400.

On the support side, the nearest support level for EUR/USD is located at the 20 EMA near 1.1300. In case EUR/USD manages to settle back below the support at the 20 EMA, it will head towards the support level which is located at 1.1270. A move below this level will open the way to the test of the support at the recent lows at 1.1230.

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