EUR/USD is trying to develop additional upside momentum above the major resistance level at 1.1910.
Euro Gained Strong Upside Momentum
EUR/USD managed to get above the major resistance level at 1.1910 and is moving higher while the U.S. dollar is losing ground against a broad basket of currencies.
It was supposed to be a quiet day for foreign exchange market traders due to Thanksgiving holiday but American currency found itself under pressure. The U.S. Dollar Index settled below the major support at 92.10 and is currently trying to settle below 91.90. The nearest support level for the U.S. Dollar Index is located at the yearly lows at 91.75, and a move below this level will provide additional support to EUR/USD.
Yesterday, U.S. released several economic reports which highlighted the worsening situation on the job front. The Initial Jobless Claims report indicated that 778,000 Americans filed for unemployment benefits in a week compared to analyst consensus of 730,000.
Meanwhile, Personal Income declined by 0.7% month-over-month in October while analysts expected that it would remain unchanged compared to the previous month. Personal Spending increased by 0.5%. It is clear that the U.S. economy needs another stimulus package, and traders expect that another round of money-printing will put additional pressure on the U.S. dollar.
EUR/USD is currently trying to settle above the key resistance level at 1.1910. EUR/USD has already managed to get above this level, and the key task for the bulls is to keep the momentum going.
The next resistance level for EUR/USD is located at 1.1965. If EUR/USD settles above this level, it will head towards the psychologically important resistance level at 1.2000.
A move above 1.2000 will be a major development as it will signal that EUR/USD will try to establish a new upside trend after months of range-bound trading.
On the support side, a move below 1.1910 will push EUR/USD back towards the previous resistance at 1.1880 which will likely serve as the first support level. If EUR/USD declines below this level, it will gain downside momentum and head towards the next support at the 20 EMA at 1.1850.