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EUR/USD Video 05.10.20.
Euro Continues Its Attempts To Gain Upside Momentum
EUR/USD failed to settle above the key resistance level at 1.1750 and continues to trade in a range between the support at 1.1695 and the resistance at the 20 EMA at 1.1740.
The U.S. dollar is mostly flat against a broad basket of currencies, and the U.S. Dollar Index has currently settled near 93.80, just below the resistance at the 50 EMA at 93.90.
If the U.S. Dollar Index manages to settle above the 50 EMA, it will likely gain upside momentum which will be bearish for EUR/USD.
Today, traders will focus on the news about Donald Trump’s health and the upcoming Services PMI reports.
Euro Area Services PMI is expected to decline from 50.5 in August to 47.6 in September. Numbers below 50 show contraction so analysts expect that Euro Area services segment has found itself under pressure once again due to the worsening situation on the coronavirus front in Europe.
France is set to place Paris on maximum COVID-19 alert and impose additional restrictive measures on bars and restaurants. The services area will be unable to grow in such environment, so the only question for the market is the future pace of the decline in Services PMI.
Technical Analysis
EUR/USD continues its attempts to get above the resistance at the 50 EMA at 1.1735 and the 20 EMA at 1.1740. A move above these resistance levels will lead to a test of the major resistance at 1.1750.
In case EUR/USD manages to settle above the resistance at 1.1750, it will gain upside momentum and head towards the next resistance level at 1.1830. A move above 1.1830 will open the way to the test of the next resistance at 1.1910.
On the support side, the nearest support level is still located at 1.1695. EUR/USD has recently tested this level but quickly rebounded back above 1.1700. If EUR/USD gets below the support at 1.1695, it will gain downside momentum and move towards the next support level near the recent lows at 1.1630.
At this point, EUR/USD is stuck in the range between the support at 1.1695 and the 20 EMA at 1.1740. Most likely, EUR/USD will need additional catalysts to get out of this range.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire