Yahoo Finance EUR/USD Daily Forecast – Test Of Support At 1.1580
Euro Is Losing Ground Against U.S. Dollar
EUR/USD is trying to settle below the support level at 1.1580 while the U.S. dollar is moving higher against a broad basket of currencies.
The U.S. Dollar Index is currently trying to get above the nearest resistance level at 94.20. If this attempt is successful, it will gain additional upside momentum and move towards the resistance level near yearly highs at 94.50 which will be bearish for EUR/USD.
Today, foreign exchange market traders had a chance to take a look at the important economic reports from China. China’s GDP Growth Rate report indicated that GDP grew by 4.9% year-over-year in the third quarter compared to analyst consensus which called for growth of 5.2%.
China’s Industrial Production increased by 3.1% year-over-year in September while analysts expected that it would grow by 4.5%. Retail Sales exceeded analyst expectations, growing by 4.4% year-over-year in September compared to analyst consensus of 3.3%.
However, better-than-expected Retail Sales report was not able to offset the impact of disappointing GDP Growth Rate and Industrial Production reports. As a result, demand for safe-haven assets increased, providing support to the American currency.
Technical Analysis
EUR/USD is currently testing the support level at 1.1580. In case this test is successful, EUR/USD will move towards the next support at 1.1560.
A move below the support at 1.1560 will push EUR/USD towards the next support at 1.1540. In case EUR/USD manages to settle below 1.1540, it will move towards the support at 1.1510. A successful test of this level will open the way to the test of the next support at 1.1470.
On the upside, EUR/USD needs to stay above 1.1580 to have a chance to develop upside momentum in the near term. The next resistance level is located at the 20 EMA at 1.1610. If EUR/USD settles above the 20 EMA, it will gain additional upside momentum and head towards the resistance level which is located at 1.1630.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
