EUR/USD Tests Resistance At 1.1050

Key Insights

• EUR/USD is moving higher ahead of the release of Euro Area inflation data for February. 
• In the U.S., traders will likely focus on the Industrial Production and Initial Jobless Claims reports. 
• A successful test of the resistance at 1.1050 will push EUR/USD towards the next resistance at 1.1090.

Euro Tries To Gain More Ground Against U.S. Dollar

EUR/USD is currently trying to settle above the resistance at 1.1050, while the U.S. dollar is losing some ground against a broad basket of currencies.

The U.S. Dollar Index continues its attempts to settle below the support level at 98.35. In case the U.S. Dollar Index manages to settle below this level, it will move towards the next support at the 98 level, which will be bullish for EUR/USD.

Today, foreign exchange market traders will focus on the inflation data from the EU. Analysts expect that Euro Area Inflation Rate increased by 0.9% month-over-month in February. On a year-over-year basis, Euro Area Inflation Rate is projected to grow by 5.8%. Euro Area Core Inflation Rate is expected to increase by 2.7% year-over-year.

In the U.S., traders will take a look at the Industrial Production report for February which is expected to show that Industrial Production increased by 0.5% month-over-month. On a year-over-year basis, Industrial Production is expected to grow by 4.3%. Meanwhile, the Initial Jobless Claims report is projected to show that 220,000 Americans filed for unemployment benefits in a week.

Technical Analysis

EUR/USD is testing the resistance at the 20 EMA at 1.1050. In case this test is successful, EUR/USD will move towards the next resistance level, which is located at 1.1090.

A move above the resistance at 1.1090 will push EUR/USD towards the resistance at 1.1120. If EUR/USD gets above this level, it will head towards the next resistance at 1.1150.

On the support side, the nearest support level for EUR/USD is located at 1.1035. In case EUR/USD declines below this level, it will head towards the next support at 1.1000. A successful test of this level will push EUR/USD towards the support at 1.0960.

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