EUR/USD Rebounds Ahead Of Euro Area GDP Data

Euro Gains Ground Against U.S. Dollar

EUR/USD is currently trying to settle above the resistance at 1.1330 while U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index is testing the support level which is located near the 20 EMA at 96. In case the U.S. Dollar Index manages to settle below the 20 EMA, it will gain downside momentum and move towards the support at 95.75 which will be bullish for EUR/USD.

Today, foreign exchange market traders will focus on economic data from EU. Analysts expect that the second estimate of the fourth-quarter Euro Area GDP Growth Rate report will show that Euro Area GDP increased by 0.3% quarter-over-quarter. On a year-over-year basis, Euro Area GDP is projected to grow by 4.6%.

Euro Area ZEW Economic Sentiment Index is projected to increase from 49.4 in January to 49.6 in February. Meanwhile, Euro Area Employment Change report is expected to show that employment increased by 2.1% year-over-year in the fourth quarter.

Technical Analysis

EUR/USD is testing the resistance level at 1.1330. In case EUR/USD manages to settle above this level, it will move towards the next resistance which is located at the 50 EMA at 1.1350.

If EUR/USD gets above the 50 EMA, it will gain additional upside momentum and move towards the next resistance level at 1.1370. A successful test of this level will open the way to the test of the resistance at 1.1390. In case EUR/USD climbs above the resistance at 1.1390, it will head towards the next resistance level at 1.1420.

On the support side, EUR/USD needs to settle below 1.1330 to have a chance to gain downside momentum in the near term. The next support level for EUR/USD is located at 1.1300.

In case EUR/USD moves back below the support at 1.1300, it will head towards the support level at 1.1270. A successful test of the support at 1.1270 will push EUR/USD towards the support at 1.1230.

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