EUR/USD Daily Forecast – Another Test Of Resistance At 1.1880

EUR/USD Video 18.11.20.

Euro Continues To Gain Ground Against U.S. Dollar

EUR/USD is trying to settle above the resistance at 1.1880 as the U.S. dollar remains under pressure against a broad basket of currencies.

The U.S. Dollar Index is slowly declining towards the nearest support level at 92.10. There are no big moves in major currency pairs on the foreign exchange market today but the U.S. dollar has managed to gain sufficient downside momentum and is declining for the fifth day in a row.

The yields on U.S. government bonds have pulled back from recent highs, and the additional support which was provided by them has evaporated. Without the support from higher U.S. government bond yields, U.S. dollar found itself under continuous pressure.

Today, EUR/USD traders will focus on the latest inflation data from EU. Euro Area Inflation Rate is projected to increase by 0.2% on a month-over-month basis in October. On a year-over-year basis, Inflation Rate is expected to decrease by 0.3%. Core Inflation Rate is expected to grow by 0.2% year-over-year. Traders will have a chance to evaluate whether the recent problems with coronavirus in Europe put additional pressure on prices.

Technical Analysis

eur usd november 18 2020

EUR/USD is currently testing the nearest resistance level at 1.1880. In case EUR/USD manages to get above this level, it will head towards the major resistance at 1.1910. The resistance at 1.1910 has already been tested in November, and EUR/USD faced serious pressure at this level.

If EUR/USD settles above the resistance at 1.1910, it will gain additional upside momentum and head towards the next resistance level at 1.1965. A successful test of this level will open the way to the psychologically important level 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 support at 1.1800 although it may also get some support at the 20 EMA at 1.1815. A move below the support at 1.1800 will open the way to the test of the next support level at the 50 EMA at 1.1785.

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