EUR/USD Tried To Settle Below 1.1300

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

EUR/USD is currently trying to settle below the support level at 1.1300 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index attempts to settle above 96.25. In case the U.S. Dollar Index manages to settle above the resistance at 96.25, it will head towards the resistance at 96.50, which will be bearish for EUR/USD.

There are no important economic reports scheduled to be released in the EU today, so foreign exchange market traders will focus on the reports from the U.S.

The flash readings of PMI reports for February will likely serve as the key drivers today. Analysts expect that Manufacturing PMI increased from 55.5 in January to 56 in February while Services PMI grew from 51.2 to 53.

Traders will also monitor the developments in U.S. government bond markets as rising geopolitical tensions boost demand for the safe-haven Treasuries, pushing their yields lower. In case Treasury yields continue to move lower, the U.S. dollar may find itself under some pressure.

Technical Analysis

EUR/USD is testing the support level at 1.1300. In case EUR/USD manages to settle below this level, it will move towards the support level at 1.1270, although it may also get some support near 1.1285.

RSI remains in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge. If EUR/USD declines below the support at 1.1270, it will head towards the next support level at 1.1230.

On the upside, the previous support level at 1.1330 will serve as the first resistance level for EUR/USD. If EUR/USD gets above this level, it will move towards the resistance, which is located near the 50 EMA and the 20 EMA at 1.1345.

A move above the 50 EMA will indicate that EUR/USD will try to gain sustainable upside momentum. In this scenario, EUR/USD will move towards the resistance at 1.1370.

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