EUR/USD Tests Resistance At 1.1125
- EUR/USD is gaining ground ahead of the release of Euro Area economic sentiment data.
- Today, traders will also keep an eye on Treasury yields, which have pulled back from recent highs.
- A move above the resistance at 1.1125 will push EUR/USD towards the resistance at 1.1150.
U.S. Dollar Is Losing Ground Against Euro
EUR/USD is currently trying to settle above the 50 EMA at 1.1125, while the U.S. dollar is under pressure against a broad basket of currencies.
The U.S. Dollar Index has settled in the range between the support at 98 and the resistance at 98.35. It has already made several attempts to get below the support at 98, but these attempts yielded no results. In case the U.S. Dollar Index manages to settle below this level, it will head towards the support at 97.75, which will be bullish for EUR/USD.
Today, foreign exchange market traders will have a chance to take a look at the final reading of Euro Area Consumer Confidence report for March. Analysts expect that Euro Area Consumer Confidence declined from -8.8 in February to -18.7 in March.
Traders will also focus on Euro Area Industrial Sentiment and Euro Area Services Sentiment reports. Euro Area Industrial Sentiment is expected to decline from 14 in February to 9 in March, while Euro Area Services Sentiment is projected to decrease from 13 to 10.
EUR/USD is testing the resistance at the 50 EMA at 1.1125. In case EUR/USD manages to settle above the 50 EMA, it will move towards the next resistance level, which is located at 1.1150.
A move above the resistance at 1.1150 will push EUR/USD towards the next resistance at 1.1170. If EUR/USD climbs above this level, it will move towards the resistance at 1.1190.
On the support side, the previous resistance at 1.1100 will serve as the first support level for EUR/USD. If EUR/USD manages to settle below this level, it will move towards the next support at 1.1070. A successful test of the support at 1.1070 will open the way to the test of the next support level, which is located near the 20 EMA at 1.1050.
For a look at all of today’s economic events, check out our economic calendar.