EUR/USD Found Support Near 1.1330
Euro Tries To Rebound Against U.S. Dollar
EUR/USD is currently trying to settle back above 1.1330 while U.S. dollar is losing some ground against a broad basket of currencies.
The U.S. Dollar Index is currently stuck in the range between the support at the 50 EMA at 95.60 and the resistance at the 20 EMA at 95.70. In case the U.S. Dollar Index manages to settle above the 20 EMA, it will move towards the resistance at the 96 level which will be bearish for EUR/USD.
Yesterday, EU reported that ZEW Economic Sentiment Index improved from 26.8 in December to 49.4 in January compared to analyst forecast of 29.5.
Today, foreign exchange market traders will have a chance to take a look at Building Permits and Housing Starts reports from U.S. Analysts expect that Building Permits increased by 0.4% month-over-month in December. Housing Starts are projected to decline by 2% month-over-month.
Traders will also monitor the developments in U.S. government bond markets. Treasury yields continue to move higher, which may provide more support to the U.S. dollar. It should be noted that the current move is very strong. Just several trading sessions ago, the yield of 2-year Treasuries was 0.90%, and it is currently trying to settle above 1.07%.
EUR/USD received support near 1.1330 and is trying to rebound. The next resistance level for EUR/USD is located at 1.1350.
If EUR/USD manages to settle above this level, it will get to the test of the resistance at the 50 EMA at 1.1365. A move above the 50 EMA will open the way to the test of the resistance at 1.1400.
On the support side, EUR/USD needs to settle below 1.1330 to continue its pullback. The next support level for EUR/USD is located at 1.1300.
If EUR/USD declines below 1.1300, it will head towards the support which is located at 1.1270. A move below this level will push EUR/USD towards the support at 1.1230.
For a look at all of today’s economic events, check out our economic calendar.