EUR/USD Slipped Below 1.1000

Key Insights

• Euro remains under pressure against U.S. dollar. 
• Flash PMI reports from the EU and the U.S. may have a material impact on today’s trading. 
• A successful test of the support at 1.1000 will lead to the test of the next support at 1.0960.

U.S. Dollar Gains Ground Against Euro

EUR/USD is currently trying to settle below the support at 1.1000, while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index managed to get above the resistance at 98.70 and is moving towards the next resistance level at 99. 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 take a look at flash PMI reports from the EU and the U.S. Analysts expect that Euro Area Manufacturing PMI declined from 58.2 in February to 56 in March. Euro Area Services PMI is projected to decrease from 55.5 to 54.2.

In the U.S., Manufacturing PMI is expected to decrease from 57.3 to 56.3, while Services PMI is projected to decline from 56.5 to 56.

Traders will also focus on the Durable Goods Orders report, which is expected to show that Durable Goods Orders declined by 0.5% month-over-month in February. Initial Jobless Claims report is expected to indicate that 212,000 Americans filed for unemployment benefits in a week.

Technical Analysis

EUR/USD is testing the support level at 1.1000. If EUR/USD settles below this level, it will get to the test of the next support, which is located at the recent lows at 1.0960.

A move below the support at 1.0960 will push EUR/USD towards the support at 1.0930. In case EUR/USD declines below this level, it will head towards the next support at 1.0900.

On the upside, EUR/USD needs to get back above 1.1000 to have a chance to gain upside momentum in the near term. The next resistance level for EUR/USD is located near the 20 EMA at 1.1035.

If EUR/USD manages to settle above the 20 EMA, it will move towards the resistance at 1.1060. A successful test of the resistance at 1.1060 will push EUR/USD towards the resistance at 1.1100.

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