US Markets

EUR/USD Daily Forecast – Test Of Resistance At 1.1830

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EUR/USD Video 12.10.20.

U.S. Stimulus Negotiations Yielded No Results

EUR/USD is currently trying to settle above 1.1800 as the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle below the 93 level but did not manage to gain sufficient downside momentum and rebounded closer to 93.10.

If the U.S. Dollar Index gets below 93, it will move towards the support at 92.80 which will be bullish for EUR/USD.

There are no important economic reports scheduled to be released in the U.S. and EU today so traders will focus on Brexit news and U.S. stimulus deal negotiations.

At this point, traders are optimistic about the Brexit deal so euro and British pound enjoy support. Meanwhile, U.S. lawmakers have once again failed to reach progress in their negotiations on the new coronavirus aid package.

Previously, U.S. President Donald Trump offered a coronavirus aid package worth $1.8 trillion, but Democrats continued to insist on their $2.2 trillion proposal.

On Sunday, the Trump administration proposed to use funds from the expired small-business loan program to deliver some stimulus before negotiations on the broader package are concluded. Democrats dismissed the proposal as inadequate. It remains to be seen whether U.S. lawmakers will be able to negotiate any stimulus deal before the November election.

Technical Analysis

EUR/USD managed to get above 1.1800 and tested the resistance at 1.1830. While EUR/USD did not gain sufficient upside momentum to get above 1.1830, another test of this level looks imminent.

If EUR/USD gets above the resistance at 1.1830, it will gain additional upside momentum and head towards the next resistance level at 1.1910. A move above the resistance at 1.1910 will open the way to the test of the next resistance at 1.1965.

On the support side, the nearest support level for EUR/USD is located at the 20 EMA at 1.1770. If EUR/USD gets below the 20 EMA, it will head towards the test of the major support level at the 50 EMA at 1.1750.

A move below the 50 EMA will signal that EUR/USD has lost its upside momentum. In this case, EUR/USD will move towards the support 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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