EUR/USD Tests Resistance At 1.0930

Key Insights

• EUR/USD gains some ground as the rebound continues. 
• Traders will wait for the ECB Interest Rate Decision, which will be released tomorrow. 
• A move above 1.0930 will push EUR/USD towards the next resistance level at 1.0960.

Euro Continues To Move Higher Against U.S. Dollar

EUR/USD is currently trying to settle above the resistance at 1.0930, while the U.S dollar is moving lower against a broad basket of currencies.

The U.S. Dollar Index is stuck near the support level at 99. If the U.S. Dollar Index declines below this level, it will move towards the next support at 98.70, which will be bullish for EUR/USD.

Yesterday, EU released the third estimate of the fourth-quarter Euro Area GDP Growth Rate report, which indicated that Euro Area GDP increased by 0.3% on a quarter-over-quarter basis, in line with the analyst consensus.

There are no important economic reports scheduled to be released today, so foreign exchange market traders will wait for the ECB Interest Rate Decision, which will be released tomorrow. The interest rate is expected to stay unchanged, and the ECB will likely highlight the importance of supporting the economy at a time when Brent oil is trading above the $130 level.

Technical Analysis

EUR/USD is testing the resistance level at 1.0930. In case this test is successful, EUR/USD will move towards the next resistance, which is located at the recent highs at 1.0960.

A move above the resistance at 1.0960 will push EUR/USD towards the resistance at 1.1000. If EUR/USD manages to settle above this level, it will head towards the next resistance level at 1.1035.

On the support side, the previous resistance level at 1.0900 will serve as the first support level for EUR/USD. If EUR/USD declines below this level, it will head towards the support at 1.0885.

A successful test of the support at 1.0885 will push EUR/USD towards the support at 1.0865. In case EUR/USD manages to settle below 1.0865, it will head towards the support at 1.0840.

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