EUR/USD Tests Support At 1.0680

Key Insights

• EUR/USD remains under pressure as the U.S. Dollar Index is testing new highs. 
• Treasury yields are trying to rebound, which may provide more support to the American currency. 
• A successful test of the support at 1.0680 will push EUR/USD towards the next support level at 1.0650.

Euro Continues To Lose Ground Against U.S. Dollar

EUR/USD is currently trying to settle below the support at 1.0680, while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index managed to settle above the resistance at 101.75 and is testing the next resistance level at 101.90. In case this test is successful, the U.S. Dollar Index will head towards the next resistance at 102.20, which will be bearish for EUR/USD.

Today, foreign exchange market traders will take a look at economic reports from the U.S. Analysts expect that Durable Goods Orders increased by 1% month-over-month in March, while New Home Sales declined by 0.5%.

Traders will also keep an eye on the developments in U.S. government bond markets. Treasury yields are trying to rebound after the recent pullback. In case Treasury yields move closer to yearly highs, the American currency may get more support.

Technical Analysis

EUR/USD is testing the support level at 1.0680. In case EUR/USD manages to settle below this level, it will head towards the next support level, which is located at 1.0650.

A successful test of the support at 1.0650 will open the way to the test of the next support at 1.0635. If EUR/USD declines below this level, it will head towards the support level at 1.0600.

On the upside, the previous support level at 1.0700 will serve as the first resistance level for EUR/USD. In case EUR/USD manages to settle above this level, it will head towards the next resistance level, which is located at 1.0730. A move above 1.0730 will push EUR/USD towards the resistance at 1.0760.

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