EUR/USD Tests Support At 1.0970

Key Insights

• EUR/USD is moving lower amid worries about the health of the European economy. 
• Today, traders will have a chance to take a look at the final reading of Euro Area Services PMI report. 
• A move below the support at 1.0970 will open the way to the test of the next support at 1.0950.

Euro Remains Under Pressure Against U.S. Dollar

EUR/USD  continues its attempts to settle below the support level at 1.0970, while the U.S. dollar is losing some ground against a broad basket of currencies.

The U.S. Dollar Index faced resistance near the 99 level and pulled back towards 98.90. In case the U.S. Dollar Index settles below 98.90, it will head towards the support level at 98.70, which will be bullish for EUR/USD.

Today, foreign exchange market traders will focus on the final reading of the Euro Area Services PMI report for March. The report is expected to show that Euro Area Services PMI declined from 55.5 in February to 54.8 in March.

It should be noted that the European currency remains under pressure due to worries about the near-term future of the European economy. EU prepares another round of sanctions on Russia, which may also increase the economic pressure on the EU itself, so traders should keep a close eye on the sanctions news in the upcoming days.

Technical Analysis

EUR/USD is testing the support level at 1.0970. In case this test is successful, EUR/USD will move towards the next support level, which is located at 1.0950.

A successful test of the support at 1.0950 will open the way to the test of the next support at 1.0930. If EUR/USD declines below this level, it will move towards the support level at 1.0900.

On the upside, the previous support level at 1.0990 will serve as the first resistance level for EUR/USD. If EUR/USD manages to settle above this level, it will head towards the next resistance at 1.1010.

A move above the resistance at 1.1010 will push EUR/USD towards the resistance at the 20 EMA at 1.1035. In case EUR/USD gets above this level, it will head towards the next resistance at 1.1050.

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