EUR/USD Video 08.09.20.
U.S. Dollar Attempts To Gain More Ground Against The Euro
EUR/USD is trying to gain more downside momentum below the 20 EMA at 1.1840 while the U.S. dollar is mostly flat against a broad basket of currencies.
The U.S. Dollar Index continues its attempts to settle above the 20 EMA at 93. The nearest resistance for the U.S. Dollar Index is located at 93.20. A move above this level will confirm that the U.S. Dollar Index has firmly settled above the key resistance at the 20 EMA. In this case, the U.S. Dollar Index will head towards 93.50 which would be bearish for EUR/USD.
Today, traders will have a chance to evaluate the third estimate of second-quarter GDP Growth Rate in Euro Area. Analysts expect that Euro Area GDP declined by 12.1% on a quarter-over-quarter basis.
In addition, EU will provide the final reading of the second-quarter Euro Area Employment Change report. Analysts project that the number of employed workers declined by 2.8% on a quarter-over-quarter basis.
Meanwhile, traders continue to focus on the upcoming European Central Bank Interest Rate Decision which is scheduled to be announced on Thursday. The key question is whether the ECB is ready to take a more dovish stance to stop the rise of the euro and provide additional stimulus to the European economy.
Technical Analysis
EUR/USD has managed to get below the 20 EMA at 1.1840 but has so far failed to gain meaningful downside momentum. However, RSI is at moderate levels so there is plenty of room to gain more momentum in case the right catalysts emerge.
The next material support level for EUR/USD is located at 1.1765. If EUR/USD settles below this support level, it will head towards the next support at the 50 EMA at 1.1725. A move below the 50 EMA will present a major problem for EUR/USD bulls since EUR/USD did not form any material levels between 1.1500 and 1.1700 in 2020 so a downside move may be fast.
On the upside, the nearest resistance for EUR/USD is located at the 20 EMA at 1.1840. If EUR/USD manages to settle above this resistance level, it will head towards the next resistance at 1.1910.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
