EUR/USD Tests Resistance At 1.1035

Key Insights

• EUR/USD has stabilized below the resistance level at 1.1035.
• Traders will focus on the Euro Area Consumer Confidence report. 
• A successful test of the resistance at 1.1035 will push EUR/USD towards the 20 EMA at 1.1050.

Euro Is Mostly Flat Against U.S. Dollar

EUR/USD continues its attempts to settle above the resistance at 1.1035, while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index received support near 98.35 and is currently trying to settle above 98.50. In case this attempt is successful, the U.S. Dollar Index will move towards the resistance at 98.70, which will be bearish for EUR/USD.

Today, foreign exchange market traders will focus on the flash reading of the Euro Area Consumer Confidence report for March. Analysts expect that Euro Area Consumer Confidence declined from -8.8 in February to -12.9 in March.

Traders will also take a look at the New Home Sales report from the U.S. The report is expected to show that New Home Sales increased by 1.1% month-over-month in February.

It should be noted that Treasury yields keep moving higher, and the continuation of the current trend may provide more support to the American currency as ECB remains dovish despite inflation threat.

Technical Analysis

EUR/USD has recently made an attempt to settle above the resistance at 1.1035 but failed to develop sufficient upside momentum and pulled back. In case EUR/USD manages to settle above this level, it will move towards the next resistance at the 20 EMA at 1.1050.

A move above the resistance at 1.1050 will push EUR/USD towards the resistance level at 1.1060. In case EUR/USD climbs above this level, it will head towards the next resistance level at 1.1100.

On the support side, the nearest support level for EUR/USD is located at 1.1000. If EUR/USD declines below this level, it will move towards the next support at the recent lows at 1.0960. A successful test of this level will push EUR/USD towards the support at 1.0930.

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