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

EUR/USD Video 29.10.20.


Euro Little Changed Against U.S. Dollar After Yesterday’s Sell-Off

EUR/USD is flat after yesterday’s sell-off while the U.S. dollar is little changed against a broad basket of currencies.

Know where EUR/USD is headed? Take advantage now with 

75% of retail CFD investors lose money

The U.S. Dollar Index has recently made an attempt to settle above the 50 EMA at 93.55 but failed to gain additional momentum and declined below 93.50. If the U.S. Dollar Index moves above the 50 EMA, EUR/USD will find itself under pressure.

Yesterday, France announced a new national lockdown while Germany decided to close bars, restaurants and gyms in order to deal with the second wave of the virus.

Today, EU will provide Consumer Confidence report for October. Analysts expect that Consumer Confidence will decrease from -13.9 to -15.5. Most likely, Consumer Confidence will continue to trend down after the recent developments on the virus front. The only question is whether it will be a gradual decline or a sudden collapse in confidence, similar to the one that happened in April 2020.

In addition to Consumer Confidence, EUR/USD traders will focus on the European Central Bank Interest Rate Decision. Currently, analysts expect that ECB will not announce new stimulus measures but promise to take a new look at the situation in December. If ECB acts faster than expected, EUR/USD may move lower since any additional help from ECB will likely come in the form of money-printing.

Technical Analysis

EUR/USD is currently trying to settle below the support level at 1.1750. If this attempt is successful, it will get to another test of the next support level at 1.1720.

In case EUR/USD declines below 1.1720, it will move towards the major support level at 1.1695. A move below this level will push EUR/USD to the support at 1.1630. There are no material levels between 1.1630 and 1.1695 so this move may be fast.

On the upside, EUR/USD needs to get back above 1.1750 to develop upside momentum. The next resistance level is located at the 50 EMA at 1.1765. A move above this level will push EUR/USD towards the 20 EMA at 1.1780.

If EUR/USD manages to settle above the 20 EMA, it will gain additional upside momentum and head towards the resistance at 1.1830.

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.