EUR/USD Tests Support At 1.1000

Key Insights

• EUR/USD remains under pressure.
• Today, traders will focus on geopolitical news and the Consumer Sentiment report from the U.S. 
• A successful test of the support at 1.1000 will open the way to the test of the next support at 1.0960.

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

EUR/USD is currently trying to settle below the support at 1.1000, while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index is slowly moving towards the resistance level at 98.75. In case the U.S. Dollar Index gets to the test of this level, EUR/USD will find itself under more pressure.

Today, foreign exchange market traders will take a look at the Michigan Consumer Sentiment report from the U.S, which is expected to show that Consumer Sentiment decreased from 62.8 in February to 61.4 in March.

Traders will also stay focused on geopolitical developments. The recent negotiations between Russia and Ukraine yielded no results. In this light, demand for safe-haven assets may increase ahead of the weekend, which will be bullish for the American currency.

I’d also note that the yield of 10-year Treasuries continues its attempts to settle above 2.00%. A move above this level will push the yield of 10-year Treasuries towards yearly highs near 2.06%, which will be bullish for the U.S. dollar.

Technical Analysis

EUR/USD is testing the support level at 1.1000. In case EUR/USD manages to settle below this level, it will head towards the next support, which is located at 1.0960.

A move below the support at 1.0960 will open the way to the test of the support at 1.0930. If EUR/USD declines below 1.0930, it will head towards the support level at 1.0900.

On the upside, EUR/USD needs to settle back above 1.1000 to have a chance to gain upside momentum in the near term. The next resistance level for EUR/USD is located at 1.1035.

In case EUR/USD climbs back above this level, it will head towards the resistance at 1.1060. A successful test of this level will open the way to the test of the resistance near the 20 EMA at 1.1100.

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