EUR/USD Gains Some Ground Ahead Of Euro Area Consumer Confidence Data

U.S. Dollar Declines Against Euro

EUR/USD continues to trade near the resistance level at 1.1370 while U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index is testing the support level at the 50 EMA at 95.80. In case the U.S. Dollar Index manages to settle below this level, it will head towards the next support level at 95.40 which will be bullish for EUR/USD.

Today, foreign exchange market traders will take a look at the flash reading of Euro Area Consumer Confidence report for February. Analysts expect that Euro Area Consumer Confidence improved from -8.5 to -8.

It remains to be seen whether this report will have a material impact on currency dynamics as the market remains focused on the situation in Ukraine and the dynamics of U.S. Treasury yields. The recent increase in demand for safe-haven assets has put some pressure on Treasury yields, which was bearish for the U.S. dollar.

Technical Analysis

EUR/USD remains stuck near the resistance level at 1.1370. It has already made several attempts to settle above this level in recent trading sessions, but these attempts yielded no results.

In case EUR/USD manages to settle above 1.1370, it will move towards the next resistance level at 1.1390. A successful test of the resistance at 1.1390 will open the way to the test of the next resistance at 1.1425. In case EUR/USD gets above this level, it will head towards the resistance which is located at 1.1450.

On the support side, EUR/USD needs to settle below 1.1370 to have a chance to develop downside momentum in the near term. The next support level for EUR/USD is located at the 50 EMA at 1.1350.

A move below the support level at 1.1350 will push EUR/USD towards the next support at 1.1330. If EUR/USD declines below the support at 1.1330, it will head towards the support level at 1.1300.

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