EUR/USD Daily Forecast – Support At 1.1630 In Sight
EUR/USD Video 30.10.20.
Euro Continues To Lose Ground Against U.S. Dollar
EUR/USD has managed to get below the support at 1.1695 and is trying to develop additional downside momentum while the U.S. dollar is flat against a broad basket of currencies.
Yesterday, the European Central Bank left the interest rate unchanged but promised to provide additional support at the next meeting. ECB President Christine Lagarde stated that the Bank was working on all instruments. Most likely, the ECB will expand its Pandemic Emergency Purchase Programme (PEPP) in December.
Not surprisingly, the prospect of further easing put pressure on EUR/USD which declined below the important support level at 1.1695. In addition, the euro is pressured by the challenging situation with the virus in Europe.
Today, EU will provide Euro Area GDP Growth Rate report for the third quarter. Analysts expect that third-quarter GDP will grow by 9.4% quarter over quarter after falling by 11.8% in the previous quarter.
Euro Area Unemployment Rate is projected to increase from 8.1% to 8.3% in September. Inflation Rate is expected to be -0.3% on a year-over-year basis in October, while Core Inflation Rate is expected to grow by 0.2%.
Technical Analysis
EUR/USD settled below the major support level at 1.1695 and is trying to get to the test of the next support level at 1.1630. RSI is still in the moderate territory so there is plenty of room to gain downside momentum in case the right catalysts emerge.
If EUR/USD manages to settle below the support at 1.1630, it will head towards the next support level at 1.1580. A move below 1.1580 will open the way to the test of the next support at 1.1540.
I’d note that there are no major support levels between 1.1630 and 1.1500 so EUR/USD may quickly move between levels if it gets below 1.1630.
On the upside, the previous support at 1.1695 will likely serve as the first resistance level for EUR/USD. If EUR/USD settles above this level, it will head towards the resistance at 1.1720. A move above the resistance at 1.1720 will open the way to the test of the major resistance area between 1.1750 and the 20 EMA at 1.1765.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
