EUR/USD Price Prediction – Test Of Resistance At 1.0550

Key Insights

• EUR/USD continues to gain ground, driven by recent PPI data from Germany. 
• Today, traders will focus on the Existing Home Sales report from the U.S. 
• A successful test of the resistance at 1.0550 will push EUR/USD towards the next resistance at 1.0580.

Euro Stays Strong Against U.S. Dollar

EUR/USD continues to move higher despite rising Treasury yields. The yield of 10-year Treasuries is currently trying to settle above 3.30%, while the yield of 30-year Treasuries is testing the 3.38% level.

Yesterday’s PPI data from Germany remains the key driver for the European currency as traders are ready to bet that ECB will be forced to fight inflation.

Today, traders will focus on the Existing Home Sales report from the U.S. Analysts expect that Existing Home Sales declined by 5% month-over-month in May after falling by 2.4% in April.

Existing Home Sales have been declining since February as mortgage rates have significantly increased in recent months. Currently, the average 30-year fixed mortgage rate is at levels that were last seen back in 2008.

Not surprisingly, high morgage rates have put significant pressure on housing markets. Meanwhile, problems in the housing and equity markets may provide more support to the safe-haven U.S. dollar.

EUR/USD Tries To Settle Above The 20 EMA

EUR/USD is currently testing the resistance level, which is located near the 20 EMA at 1.0550. In case EUR/USD manages to settle above this level, it will head towards the next resistance at 1.0580.

A move above 1.0580 will open the way to the test of the resistance at 1.0600. If EUR/USD climbs above this level, it will head towards the resistance at the 50 EMA at 1.0635.

On the support side, a move below 1.0550 will push EUR/USD towards the support at 1.0520. In case EUR/USD declines below this level, it will head towards the next support at 1.0490. A successful test of the support at 1.0490 will open the way to the test of the next support at 1.0460.

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