EUR/USD Moves Higher At The End Of March

Key Insights

• U.S. dollar remains under material pressure against euro. 
• Today, traders will likely focus on the Personal Income and Personal Spending reports from the U.S. 
• A successful test of the resistance at 1.1170 will push EUR/USD towards the next resistance at 1.1190.

Euro Gains Ground Against U.S. Dollar

EUR/USD is currently trying to settle above the resistance at 1.1170, 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 level at 97.75 and is trying to gain additional downside momentum. In case this attempt is successful, the U.S. Dollar Index will move towards the 50 EMA at 97.45, which will be bullish for EUR/USD.

Today, foreign exchange market traders will have a chance to take a look at the Euro Area Unemployment Rate report for February. Analysts expect that Euro Area Unemployment Rate declined from 6.8% in January to 6.7% in February.

In the U.S., traders will focus on the Personal Income and Personal Spending reports. Personal Income is expected to increase by 0.5% month-over-month in February, while Personal Spending is also projected to grow by 0.5%. Initial Jobless Claims report is expected to show that 197,000 Americans filed for unemployment benefits in a week.

Technical Analysis

EUR/USD is testing the resistance level at 1.1170. In case this test is successful, EUR/USD will move towards the next resistance level, which is located at 1.1190.

A move above the resistance at 1.1190 will open the way to the test of the resistance at 1.1230. If EUR/USD manages to settle above this level, it will head towards the next resistance at 1.1270.

On the support side, the previous resistance at 1.1150 will serve as the first support level for EUR/USD. In case EUR/USD declines below this level, it will head towards the next support at the 50 EMA at 1.1130. A successful test of the support at the 50 EMA will push EUR/USD towards the support at 1.1110.

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