EUR/USD Daily Forecast – U.S. Dollar Stays Strong Against Euro
Euro Failed To Gain Ground Against U.S. Dollar
EUR/USD continues to trade near the resistance at 1.1560 while the U.S. dollar is gaining some ground against a broad basket of currencies.
The U.S. Dollar Index received support near 94.20 and is trying to gain upside momentum. In case this attempt is successful, it will get to the test of the next resistance level at 94.50 which will be bearish for EUR/USD.
The recent economic data from EU was disappointing. Euro Area Retail Sales declined by 0.3% month-over-month in September while analysts expected that they would grow by 0.3%.
The dovish ECB and the disappointing economic data kept euro near yearly lows, and it remains to be seen whether European currency will be able to find enough buyers this week as the U.S. dollar looks ready to test yearly highs.
Tomorrow, foreign exchange market traders will have a chance to take a look at Euro Area ZEW Economic Sentiment Index which is projected to decline from 21 in October to 18.5 in November. In case this report is worse than expected, euro may find itself under more pressure.
Technical Analysis
EUR/USD has recently made another attempt to settle above the resistance at 1.1560 but failed to develop sufficient upside momentum. The nearest support level for EUR/USD is located at 1.1540.
If EUR/USD settles below this support level, it will head towards the next support at 1.1525. A successful test of the support at 1.1525 will open the way to the test of the next support level which is located at 1.1500.
On the upside, EUR/USD needs to settle above 1.1560 to have a chance to develop upside momentum in the near term. The next resistance level for EUR/USD is located at 1.1580.
A move above the resistance at 1.1580 will push EUR/USD towards the 20 EMA which is located near 1.1595. In case EUR/USD manages to settle above this level, it will head towards the next resistance level at 1.1610.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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