EUR/USD Daily Forecast – U.S. Dollar Tries To Move Higher Against The EuroEUR/USD is testing the nearest support level at 1.1630.
EUR/USD Video 28.09.20.
Euro Is Under Some Pressure At The Start Of The Week
EUR/USD continues its attempts to settle below the support at 1.1630 as the U.S. Dollar Index tries to get to another test of the significant resistance level at 94.65.
The U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, is trying to get to another test of the key resistance at 94.65.
In the previous trading session, the U.S. Dollar Index made an attempt to settle above this level but failed to gain sufficient upside momentum and pulled back closer to 94.50.
A move above the resistance at 94.65 will open the way to the test of the 95 level which will be bearish for EUR/USD.
There are no important economic reports scheduled to be released in the U.S. and EU today, so EUR/USD traders will have to wait for the Euro Area Consumer Confidence for September which will be published on Tuesday.
Euro Area Consumer Confidence is expected to improve from -14.7 to -13.9. In case Consumer Confidence is worse than projected due to the challenging situation with coronavirus in Europe, EUR/USD may find itself under increased pressure.
EUR/USD is currently trying to settle below the nearest support level at 1.1630. If this attempt is successful, EUR/USD will gain additional downside momentum and head towards the next support level at 1.1600.
While EUR/USD lost a lot of ground in the previous week, RSI remains in the moderate territory so there is more room to gain downside momentum in case the right catalysts emerge.
In this scenario, EUR/USD will move below the support at 1.1600 and head to the test of the next support level at 1.1540.
On the upside, the nearest resistance level for EUR/USD is located at 1.1695. EUR/USD has recently tried to get to the test of this level but was stopped just below 1.1695.
If EUR/USD manages to settle above the resistance at 1.1695, it will gain more upside momentum and head to the next resistance level at the 50 EMA at 1.1735.
For a look at all of today’s economic events, check out our economic calendar.