EUR/USD Moves Higher At The Start Of The Week

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 under pressure against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get below the support level at the 50 EMA at 95.80 and is trying to develop additional downside momentum. In case this attempt is successful, the U.S. Dollar Index will get closer to the next support level at 95.40 which will be bullish for EUR/USD.

Today, foreign exchange market traders will focus on the flash readings of Euro Area PMI reports. Analysts expect that Euro Area Manufacturing PMI remained unchanged at 58.7 in February. Euro Area Services PMI is expected to increase from 51.1 in January to 52 in February.

Treasury yields have recently moved away from yearly highs, which was bearish for the U.S. dollar. Today, U.S. markets are closed in observation of the Washington’s Birthday holiday, so traders will have to rely on general market sentiment and geopolitical news.

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 head towards the next resistance level at 1.1390. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

A move above the resistance at 1.1390 will push EUR/USD towards the resistance level at 1.1425. If EUR/USD climbs above the resistance at 1.1425, it will continue its upside move and head towards the next resistance level which is located at 1.1450.

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

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