EUR/USD Tries To Settle Above 1.0900 Ahead Of Retail Sales Report

Key Insights

• EUR/USD is trying to rebound after the recent pullback. 
• Today, traders will focus on the Euro Area Retail Sales report. 
• A successful test of the resistance at 1.0900 will push EUR/USD towards the next resistance at 1.0930.

Euro Attempts To Gain Ground Against U.S. Dollar

EUR/USD is currently trying to settle above the resistance at 1.0900, while the U.S. dollar is losing some ground against a broad basket of currencies.

The U.S. Dollar Index continues its attempts to settle below the support level at 99.45. If the U.S. Dollar Index declines below this level, it will gain additional downside momentum, which will be bullish for EUR/USD.

Yesterday, EU released Euro Area Producer Prices report for February. The report indicated that Euro Area Producer Prices increased by 1.1% month-over-month in February, compared to analyst consensus of 1.3%. On a year-over-year basis, Euro Area Producer Prices grew by 31.4%, compared to analyst consensus of 31.5%.

Today, foreign exchange market traders will focus on the Euro Area Retail Sales report for February. The report is expected to show that Euro Area Retail Sales increased by 0.6% month-over-month after growing by 0.2% in January. On a year-over-year basis, Euro Area Retail Sales are projected to grow by 4.8%.

Technical Analysis

EUR/USD is testing the resistance level at 1.0900. If this test is successful, EUR/USD will move towards the next resistance level, which is located at 1.0930.

A move above the resistance at 1.0930 will open the way to the test of the next resistance level, which is located at 1.0950. If EUR/USD manages to settle above this level, it will head towards the next resistance level at 1.0970.

On the support side, a move below 1.0900 will push EUR/USD towards the support level at 1.0885. In case EUR/USD declines below this level, it will head towards the next support at 1.0865. A successful test of the support at 1.0865 will open the way to the test of the support at 1.0850.

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