EUR/USD Is Moving Towards The Resistance At 1.1390

Euro Gains Ground Against U.S. Dollar

EUR/USD is currently trying to settle back above the resistance at 1.1370 while U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index failed to settle above the resistance at the 96 level and declined towards the nearest support level at the 50 EMA at 95.80. If the U.S. Dollar Index manages to settle below this level, it will gain additional downside momentum and head towards the next support level at 95.40 which will be bullish for EUR/USD.

Yesterday, EU reported that Euro Area Industrial Production increased by 1.2% month-over-month in December while analysts expected that it would grow by just 0.3%. On a year-over-year basis, Euro Area Industrial Production grew by 1.6%.

Today, foreign exchange market traders will focus on the economic reports from the U.S. which include Initial Jobless Claims, Continuing Jobless Claims, Housing Starts, and Building Permits.

Traders will also continue to monitor the developments in U.S. government bond markets. The yield of 10-year Treasuries has recently made an attempt to settle below the 2.00% level. In case the yield of 10-year Treasuries settles below this level, it will gain downside momentum and head towards 1.95% which will be bearish for the American currency.

Technical Analysis

EUR/USD continues its attempts to settle above the resistance level at 1.1370. In case EUR/USD manages to settle above this level, it will get to the test of the next resistance at 1.1390.

A move above the resistance at 1.1390 will open the way to the test of the resistance at 1.1420. If EUR/USD gets above this level, it will head towards the resistance level which is located at 1.1450. A successful test of this level will open the way to the test of the resistance at 1.1465.

On the support side, a move below 1.1370 will push EUR/USD towards the 50 EMA at 1.1350. In case EUR/USD declines below this level, it will head towards the support level at 1.1330. A successful test of the support at 1.1330 will open the way to the test of the next support at 1.1300.

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