[DAILY NOTION] FXEMPIRE - EUR/USD Forecast - Oct 23, 2020

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[DAILY NOTION] FXEMPIRE - EUR/USD Forecast - Oct 23, 2020

EUR/USD attempts to settle below 1.1800 as the U.S. dollar continues to rebound against a broad basket of currencies. The U.S. Dollar Index managed to gain some upside momentum amid concerns that the new U.S. coronavirus aid package would not be negotiated before the November election.

Currently, the U.S. Dollar Index is trying to settle above the resistance at the 93 level. If this attempt is successful, the American currency will gain additional upside momentum which will be bearish for EUR/USD.

Yesterday, U.S. reported that Initial Jobless Claims decreased from 842,000 (revised from 898,000) to 787,000 while Continuing Jobless Claims declined from 9.4 million (revised from 10.02 million) to 8.37 million. The data pointed to the continued recovery of the job market although it is clear that additional stimulus is still required to support the economy.

What's Next?

A move below the support at 1.1750 will push EUR/USD towards the next material support level at 1.1695 although it may also receive some support near 1.1720.

On the upside, EUR/USD needs to stay above 1.1800 to have a chance to gain upside momentum in the near term. The nearest resistance level for EUR/USD is located at 1.1830.

A move above this level will open the way to the test of the next resistance near the recent highs at 1.1870. In case EUR/USD moves above this level, it will head towards the major resistance at 1.1910.


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