EUR/USD Forecast: Poised to extend its intraday slide

EUR/USD Current Price: 1.1818

• US weekly unemployment claims improved to 787K in the week ended October 16.
• The focus remains around a coronavirus aid package in the US.
• EUR/USD in a corrective decline and could accelerate south once below 1.1810.

The American dollar is in recovery mode, recovering ground against most major rivals. The EUR/USD pair is trading in the red and near a daily low of 1.1811. The market mood improves just modestly as US representatives from major parties continue to discuss a stimulus deal, reporting progress but not yet able to reach an agreement. European indexes are struggling with their opening levels, while US futures are modestly up, as government bonds continue to retreat.

German data added pressure on the shared currency, as the German GFK Consumer Confidence Survey came in at -3.1 in November, worsening from a previous -1.7 and missing expectations of -2.8. The US, on the other hand, has just published Initial Jobless Claims for the week ended October 16, which came in at 787K, beating the expected 860K. The US will shortly unveil September Existing Home Sales, while the EU will publish the preliminary estimate of October Consumer Confidence.

EUR/USD short-term technical outlook

The EUR/USD pair is in a corrective decline and could extend the current slide according to intraday technical readings. The 4-hour chart shows that the price is battling with a bullish 20 SMA, although still well above the larger ones. Technical indicators in the mentioned time frame keep retreating from overbought levels, now approaching their midlines with strong bearish slopes. The decline will likely accelerate on a break below the mentioned daily low, the immediate support level.

Support levels: 1.1810 1.1770 1.1725

Resistance levels: 1.1870 1.1915 1.1950

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