EUR/USD Daily Forecast – U.S. Dollar Is Losing Ground Against Euro

EUR / USD Video 08.10.20.
The euro continues to rise against the US dollar
EUR / USD was able to stay above key support at 1.1750 and continues its attempts to gain additional upside momentum as the US dollar loses ground against a broad basket of currencies.
The US dollar index is currently trying to move below 93.50. If successful, the US dollar index will have the opportunity to test recent lows at 93.35. Moving below this level will provide significant support for EUR / USD.
Yesterday the US Federal Reserve published the FOMC minutes of the last meeting. The FOMC minutes indicated that the Fed had not yet decided whether it was appropriate to increase the number of asset purchases, which remained the largest tool in its toolbox.
In general, the FOMC protocol has been largely neutral for the US dollar. Today traders will focus on the upcoming reports of initial jobless claims and continuation of unemployment claims in the US, as well as the ongoing Brexit negotiations between the EU and the UK.
For the past few days, markets have been optimistic about the outlook for the Brexit deal, although it remains to be seen whether negotiators can reach a compromise deal after months of political struggle.
Technical analysis
EUR / USD is currently trying to gain more upside momentum above the significant support level at 1.1750. The next resistance level for EUR / USD is at 1.1830, although the previous bullish move was stopped a little lower at 1.1810.
EUR / USD needs to move above 1.1800 to have a chance to test the resistance test at 1.1830. A successful test of the resistance at 1.1830 opens the way to the next resistance level at 1.1910.
I would expect a lot of interest around 1.1910 as previous moves above this level have been short-lived and this level remains a major obstacle on the upside for EUR / USD. Should EUR / USD break this level, it will head towards the next resistance at 1.1965.
On the support side, EUR / USD is expected to receive strong support in the 1.1740 to 1.1750 area. Movement below this support area will push EUR / USD towards the next support at 1.1695.
In our economic calendar you will find all economic events of today.
This article was originally published on FX Empire
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