EUR/USD Daily Forecast – Euro Starts The Week On A Positive Note
EUR/USD Video 14.09.20.
U.S. Dollar Continues To Lose Ground Against The Euro
EUR/USD continues its attempts to gain more upside momentum above the 20 EMA at 1.1835 as the U.S. dollar is losing some ground against a broad basket of currencies.
The U.S. Dollar Index did not manage to get above the nearest resistance at 93.50 in recent trading sessions but remains above the key support level at the 20 EMA at 93.10.
If the U.S. Dollar Index gains more downside momentum, EUR/USD will have a good chance to get to the test of the nearest resistance level at 1.1910.
Today, traders will have a chance to evaluate Euro Area Industrial Production report for July. On a month-over-month basis, Industrial Production is expected to grow by 4%. On a year-over-year basis, Industrial Production is projected to remain under significant pressure and decline by 8.2%.
On Wednesday, the U.S. Federal Reserve will announce its Interest Rate Decision. The Interest Rate is expected to stay unchanged and traders will focus on any additional commentary from the Fed.
Previously, the Fed adopted an average inflation target of 2% which would allow it to keep rates low even if inflation gets above the 2% level. Any signs that the Fed is even more dovish than expected will likely put pressure on the American currency.
EUR/USD has managed to settle above the 20 EMA at 1.1835 and continues its rebound.
The nearest resistance level for EUR/USD is located at 1.1910. If EUR/USD manages to settle above this level, it will head towards the next resistance level at 1.1965.
A move above the resistance at 1.1965 will open the way to the test of the next resistance level at September highs at 1.2000.
On the support side, the 20 EMA serves as the nearest important support level for EUR/USD.
If EUR/USD gets below this level, it will likely gain more downside momentum and head towards the next support level at 1.1765.
In case EUR/USD moves below the support at 1.1765, it will get to the test of the 50 EMA at 1.1740. I’d expect plenty of interest at the 50 EMA level since a move below the 50 EMA will signal that EUR/USD is ready to establish a strong downside trend.
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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