EUR/USD Remains Under Pressure Ahead Of The Weekend

Key Insights

• Euro’s recent attempt to rebound faced strong resistance. 
• Today, traders will focus on PMI data from the U.S. and the EU. 
• A successful test of the support at 1.0850 will push EUR/USD towards the next support level at 1.0810.

U.S. Dollar Tries To Gain More Ground Against Euro

EUR/USD continues its attempts to settle below the support level at 1.0850, while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle below the support at 100.50 but lost momentum and rebounded towards 100.65. The nearest resistance level for the U.S. Dollar Index is located at 100.85. In case the U.S. Dollar Index gets to the test of this level, EUR/USD will find itself under more pressure.

Today, foreign exchange market traders will focus on the flash readings of PMI reports from the U.S. and the EU. Analysts expect that Euro Area Manufacturing PMI declined from 56.5 in March to 54.7 in April. Euro Area Services PMI is projected to decrease from 55.6 to 55.

In the U.S., Manufacturing PMI is projected to decrease from 58.8 in March to 58.2 in April, while Services PMI is expected to remain unchanged at 58.

Technical Analysis

EUR/USD is trying to settle below the support level at 1.0850. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

The next support level for EUR/USD is located at 1.0810. In case EUR/USD manages to settle below this level, it will head towards the support level at 1.0780. A move below 1.0780 will open the way to the test of the support at 1.0760.

On the upside, a move above 1.0850 will push EUR/USD towards the resistance at 1.0865. If EUR/USD gets back above this level, it will head towards the resistance at the 20 EMA at 1.0880. A successful test of the resistance at the 20 EMA will open the way to the test of the next resistance at 1.0900.

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