EUR/USD Tests Resistance At 1.0780

Key Insights

• EUR/USD is trying to move higher after an unsuccessful attempt to settle below the support level at 1.0760.
• In absence of economic reports from the EU, euro has a chance to gain some ground against U.S. dollar. 
• A move above 1.0780 will push EUR/USD towards the resistance at 1.0810.

Euro Tries To Rebound Against U.S. Dollar

EUR/USD is currently trying to settle back above the resistance at 1.0780, while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index continues its attempts to settle above the resistance level at 100.85. If the U.S. Dollar Index manages to settle above this level, it will move towards the resistance at 101.10, which will be bearish for EUR/USD.

There are no important economic reports scheduled to be released in the EU today, so foreign exchange market traders will focus on the economic data from the U.S. Analysts expect that Housing Starts declined by 2.3% month-over-month in March, while Building Permits decreased by 3%.

The absence of economic reports from the Euro Area provides EUR/USD with a chance to rebound. However, it remains to be seen whether such a rebound could be sustainable as the EU will release Consumer Confidence data on Thursday and PMI reports on Friday.

Technical Analysis

EUR/USD is testing the resistance level at 1.0780. In case this test is successful, EUR/USD will move towards the next resistance, which is located at 1.0810.

A move above the resistance at 1.0810 will open the way to the test of the resistance at 1.0850. If EUR/USD manages to settle above this level, it will head towards the next resistance at 1.0865.

On the support side, a move below 1.0780 will push EUR/USD towards the support level at the recent lows at 1.0760.

If EUR/USD declines below 1.0760, it will head towards the next support at 1.0730. A successful test of this level will open the way to the test of the support at 1.0680.

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