EUR/USD Faced Resistance Near 1.1230

Key Insights

• EUR/USD is currently stuck in the 1.1200 – 1.1230 range.
• Markets are somewhat optimistic after the first round of negotiations between Russia and Ukraine, which is bullish for euro. 
• Geopolitical developments remain the key driver for forex markets.

Euro Is Mostly Flat Against U.S. Dollar

EUR/USD is currently trying to settle back above the resistance at 1.1230, while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get below the support at 96.70 and is trying to develop additional downside momentum. In case this attempt is successful, the U.S. Dollar Index will move towards the 20 EMA at 96.50, which will be bullish for EUR/USD.

Today, traders will stay focused on geopolitical developments, but they will also have a chance to take a look at the final readings of U.S. Manufacturing PMI and Euro Area Manufacturing PMI reports.

Analysts expect that U.S. Manufacturing PMI increased from 55.5 in January to 57.5 in February. Euro Area Manufacturing PMI is projected to decline from 58.7 to 58.4.

Technical Analysis

EUR/USD is currently trading in the range between the support at 1.1200 and the resistance at 1.1230. In case EUR/USD manages to settle below 1.1200, it will move towards the next support level, which is located at 1.1170. A successful test of this level will push EUR/USD towards the support at 1.1130.

On the upside, a move above the resistance at 1.1230 will push EUR/USD towards the resistance level at 1.1270. In case EUR/USD gets above this level, it will head towards the 20 EMA at 1.1290.

A successful test of the resistance at the 20 EMA will open the way to the test of the next resistance at 1.1300. If EUR/USD gets above this level, it will continue its rebound and head towards the resistance at the 50 EMA at 1.1320.

For a look at all of today’s economic events, check out our economic calendar.