EUR/USD Is Moving Towards The Resistance At 1.1460

Euro Is Mostly Flat Against U.S. Dollar

EUR/USD managed to get above the resistance at 1.1420 and tries to gain additional upside momentum while U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index is stuck near the 95 level. In case the U.S. Dollar Index manages to settle below this level, it will move towards the support at 94.75 which will be bullish for EUR/USD.

Today, foreign exchange market traders will focus on commentary from ECB members De Guindos, Hakkarainen and Elderson. The key question is whether they will focus on inflation as a major threat to the European economy.

The U.S. dollar found itself under significant pressure after U.S. inflation reports met analyst estimates. As a result, euro managed to get out of the recent consolidation and moved higher against U.S. dollar.

In this environment, the market may be very sensitive to any change in tone of comments from ECB members. However, it should be noted that ECB is notoriously cautious, so it remains to be seen whether we will hear anything new from ECB members today.

Technical Analysis

EUR/USD has recently managed to settle above the resistance at 1.1420 and is trying to get to the test of the next resistance level which is located at 1.1460. In case EUR/USD gets above this level, it will head towards the next resistance at 1.1490.

RSI remains in the moderate territory, so there is plenty of room to gain additional momentum in case the right catalysts emerge. If EUR/USD gets above 1.1490, it will move towards the next resistance level at 1.1525.

On the support side, the previous resistance at 1.1420 will serve as the first support level for EUR/USD. If EUR/USD declines below this level, it will move towards the next support at 1.1390. A successful test of the support at 1.1390 will push EUR/USD towards the 50 EMA which is located near 1.1360.

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