EUR/USD Daily Forecast – Resistance At 1.1690 Stays Strong

U.S. Dollar Moves Higher Against Euro

EUR/USD failed to settle above the resistance at 1.1690 and pulled back while the U.S. dollar gained some ground against a broad basket of currencies.

The U.S. Dollar Index continues its attempts to settle back above the 50 EMA at 93.45. A move above the 50 EMA will push the U.S. Dollar Index towards the 20 EMA at 93.75 which will put more pressure on EUR/USD.

Yesterday, the European Central Bank left the interest rate unchanged a 0.0%, in line with analyst expectations. However, ECB comments were more hawkish than expected as the Bank put more focus on inflation.

Today, foreign exchange market traders will have a chance to take a look at Euro Area inflation reports for October, which will likely have a material impact on currency dynamics.

Analysts expect that Euro Area Inflation Rate increased by 0.4% month-over-month in October. On a year-over-year basis, Euro Area Inflation Rate is projected to grow by 3.7%. Euro Area Core Inflation Rate is expected to increase by 1.9% year-over-year.

Traders will also focus on Euro Area GDP Growth Rate report for the third quarter which is expected to show that Euro Area GDP increased by 2% on a quarter-over-quarter basis.

Technical Analysis

eur usd october 29 2021

EUR/USD is currently trying to settle below the support at the 50 EMA at 1.1670. In case this attempt is successful, it will get to another test of the next support level at 1.1660.

A move below the support at 1.1660 will open the way to the test of the support at the 20 EMA at 1.1630. In case EUR/USD moves back below the 20 EMA, it will head towards the support level at 1.1610.

On the upside, the nearest resistance level for EUR/USD is located at 1.1690. In case EUR/USD gets above this level, it will gain additional upside momentum and head towards the resistance at 1.1720. A move above this level will push EUR/USD towards the resistance at 1.1750.

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