EUR/USD Daily Forecast – Support At 1.1270 In Sight
Euro Is Losing Ground Against U.S. Dollar
EUR/USD managed to get below the support at 1.1300 and is moving towards the next support level at 1.1270 while U.S. dollar is moving higher against a broad basket of currencies.
The U.S. Dollar Index settled above the resistance at 96.25 and is trying to get to the test of the next resistance level at 96.50. In case this attempt is successful, EUR/USD will find itself under additional pressure.
Your capital is at risk
Germany has recently reported that Factory Orders declined by 6.9% month-over-month in October compared to analyst consensus which called for a decline of just 0.5%. This is a bearish report for the euro as it shows that Europe’s leading economy is slowing down.
Tomorrow, Germany will release Industrial Production report for October which will provide additional details on the economic situation in the country. Analysts expect that Industrial Production increased by 0.8% month-over-month in October after falling by 1.1% in September. In case Germany’s Industrial Production report is weak, euro may find itself under more pressure.
Technical Analysis
EUR/USD is moving towards the support level at 1.1270. In case EUR/USD manages to settle below this level, it will gain additional downside momentum and head towards the next support level which is located at 1.1230.
A successful test of the support at 1.1230 will open the way to the test of the next support at 1.1200. If EUR/USD declines below the support at 1.1200, it will move towards the next support level at 1.1170.
On the upside, the previous support level at 1.1300 will serve as the first resistance level for EUR/USD. RSI is in the moderate territory, so there is plenty of room to gain upside momentum in case the right catalysts emerge.
In case EUR/USD settles above the resistance at 1.1300, it will move towards the next resistance level which is located near the 20 EMA at 1.1325. A move above the 20 EMA will push EUR/USD towards the resistance level at 1.1350.
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