EUR/USD Tests Resistance At 1.0810

Key Insights

• Germany’s Producer Prices growth exceeds analyst expectations. 
• Today, traders will also focus on the Euro Area Industrial Production report for February. 
• A move above 1.0810 will push EUR/USD towards the resistance level at 1.0850.

Euro Rebounds Against U.S. Dollar

EUR/USD is currently trying to settle above the resistance at 1.0810, while the U.S. dollar is moving lower against a broad basket of currencies.

The U.S. Dollar Index has recently managed to settle below the support level at 100.85 and is trying to gain additional downside momentum. In case this attempt is successful, the U.S. Dollar Index will head towards the next support at 100.50, which will be bullish for EUR/USD.

Germany has recently released Producer Prices report for March. The report indicated that Producer Prices increased by 4.9% month-over-month, compared to analyst consensus which called for growth of 2.6%. On a year-over-year basis, Producer Prices grew by 30.9%, compared to analyst consensus of 28.2%.

Today, foreign exchange market traders will also have a chance to take a look at the Euro Area Industrial Production report. The report is expected to show that Euro Area Industrial Production increased by 0.7% month-over-month in February. On a year-over-year basis, Euro Area Industrial Production is expected to grow by 1.5%.

Technical Analysis

EUR/USD is testing the resistance level at 1.0810. In case this test is successful, EUR/USD will move towards the next resistance, which is located at 1.0850.

A move above the resistance at 1.0850 will push EUR/USD towards the next resistance level at 1.0865. In case EUR/USD manages to settle above this level, it will head towards the resistance at the 20 EMA at 1.0885.

On the support side, the previous resistance level at 1.0780 will serve as the first support level for EUR/USD. In case EUR/USD declines below this level, it will move towards the next support at the recent lows at 1.0760. A successful test of the support at 1.0760 will open the way to the test of the next support at 1.0730.

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