EUR/USD is currently trying to settle below the support level at 1.2130
while the U.S. dollar is gaining some ground against a broad basket of
currencies.To get more news about
WikiFX, you can visit wikifx official website.
The U.S. Dollar Index is trying to get to the test of the nearest
resistance level at 90.50. If the U.S. Dollar Index manages to settle
above this level, it will head towards the resistance at 90.70 which
will be bearish for EUR/USD.
Yesterday, EU reported that Euro Area Industrial Production grew by
2.5% month-over-month in November compared to analyst consensus which
called for growth of just 0.2%.
The surprising strength of the Euro Area Industrial Production did not
provide support to the euro as foreign exchange market traders focused
on Europes problems on the coronavirus front.
The recent data showed that situation in Spain, France, Germany, Italy
remained challenging so European countries will likely have to keep
virus containment measures for the upcoming weeks which will inevitably
put additional pressure on the European economy.EUR/USD managed to get
below the support at 1.2155 and attempts to settle below the next
support level at 1.2130. If EUR/USD declines below the support at
1.2130, it will move towards the next support level which is located at
the 50 EMA at 1.2115.
A successful test of the support at the 50 EMA will open the way to
the test of the next support level at 1.2080. No important levels were
formed between the support at 1.2080 and the 50 EMA at 1.2115 so this
move may be fast. In case EUR/USD settles below the support at 1.2080,
it will head towards the next support level at 1.2060.
On the upside, the previous support at 1.2155 will likely serve as the
first resistance level for EUR/USD. If EUR/USD gets above this level,
it will head towards the next resistance at 1.2175. A move above the
resistance at 1.2175 will push EUR/USD towards the resistance at the 20
EMA at 1.2200.
The Wall