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EUR/USD Daily Forecast – Test Of Resistance At 1.1780

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EUR/USD Video 09.10.20.

Euro Moves Higher Ahead Of The Weekend

EUR/USD continues its attempts to gain additional upside momentum as the U.S. dollar is losing ground against a broad basket of currencies.

EUR/USD traders remain focused on U.S. stimulus talks and Brexit news. At this point, there is nothing new on this front.

In the U.S., Republicans and Democrats continue their negotiations. Democrats have signaled that they were willing to give airlines $25 billion in aid if this aid was part of a comprehensive coronavirus aid package.

It looks like the market believes that a new coronavirus aid package is inevitable, and the only question is whether it can be delivered before the election.

Meanwhile, negotiations between EU and UK continue, and the latest reports signaled that the sides were making some progress which lifted the mood of euro and pound bulls.

While the general picture appears to be favorable for riskier assets, there’s still plenty of uncertainty which limits the losses of the U.S. dollar. That said, the U.S. Dollar Index has just managed to get below 93.50 and is heading towards the nearest support at 93.35. In case the U.S. Dollar Index moves below 93.35, it will gain additional downside momentum which will be bullish for EUR/USD.

Technical Analysis

EUR/USD managed to stay above the key support level at 1.1750 and continues its upside move. In recent trading sessions, EUR/USD faced some resistance at 1.1780.

In case EUR/USD manages to settle above this level, it will gain upside momentum and head towards the resistance at 1.1830, although it may also face some resistance at 1.1810.

If EUR/USD manages to settle above 1.1830, it will head towards the test of the major resistance level at 1.1910. A move above this level will signal that EUR/USD will try to make a significant upside move.

On the support side, the nearest support is still located at 1.1750. There’s also some support at 1.1730. If EUR/USD moves below this support area, it will head towards the next support level at 1.1695.

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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