EUR/USD Remains Under Pressure

Key Insights

• EUR/USD continues to move lower as demand for the safe-haven dollar stays strong
• A move below 1.1170 will push EUR/USD towards the support at 1.1130
• The U.S. will release several economic reports today, but the market will likely remain focused on the war in Ukraine

Euro Is Losing Ground Against U.S. Dollar

EUR/USD is currently moving towards the support level at 1.1170, while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get back above the 97 level and is trying to develop additional upside momentum. In case this attempt is successful, the U.S. Dollar Index will head towards the resistance at 97.25, which will be bearish for EUR/USD.

Today, foreign exchange market traders will stay focused on the war in Ukraine, which will remain the key driver for the markets in the upcoming days.

Traders will also take a look at the economic reports from the U.S. Analysts expect that Personal Income declined by 0.3% month-over-month in January, while Personal Spending increased by 1.5%.

Durable Goods Orders are expected to increase by 0.8% month-over-month in January. The final reading of the Michigan Consumer Sentiment report is projected to show that Consumer Sentiment improved from 61.7 in January to 67.2 in February. Pending Home Sales are projected to grow by 1% month-over-month in January. It remains to be seen whether the reports will have any notable impact on currency dynamics.

Technical Analysis

EUR/USD is trying to get below the support level at 1.1170. In case EUR/USD manages to settle below EUR/USD, it will move towards the support at 1.1130.

A move below the support at 1.1130 will open the way to the test of the support at the recent lows at 1.1110. If EUR/USD declines below this level, it will move towards the next support level at 1.1070.

On the upside, the nearest resistance level for EUR/USD is located at 1.1200. In case EUR/USD manages to settle back above this level, it will head towards the resistance at 1.1230. A successful test of this level will push EUR/USD towards the resistance at 1.1270.

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