EUR/USD Tries To Settle Back Above 1.0525

Key Insights

• EUR/USD made an attempt to settle below the 1.0500 level but lost momentum and moved higher. 
• Today, traders will focus on the economic data from the EU. 
• A successful test of the resistance at 1.0525 will open the way to the test of the next resistance level at 1.0550.

Euro Tries To Rebound After Another Sell-Off

EUR/USD is currently trying to settle back above the resistance at 1.0525, while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle above the resistance at 103.60 but lost momentum and pulled back towards the support level at 103.25. In case the U.S. Dollar Index settles back below 103.25, it will head towards the support at the 103 level, which will be bullish for EUR/USD.

Today, foreign exchange market traders will focus on the economic reports from the EU. The final reading of the Euro Area Consumer Confidence report is expected to show that Consumer Confidence improved from -18.7 in March to -16.9 in April.

Euro Area Industrial Sentiment is projected to decline from 10.4 in March to 9.5 in April, while Euro Area Services Sentiment is expected to decrease from 14.4 to 14.2.

Technical Analysis

EUR/USD received support near 1.0485 and is trying to settle back above 1.0525. In case EUR/USD manages to settle above this level, it will head towards the resistance at 1.0550.

A successful test of the resistance at 1.0550 will push EUR/USD towards the resistance at 1.0580. If EUR/USD climbs back above this level, it will head towards the next resistance level at 1.0600. A move above 1.0600 will open the way to the test of the resistance at 1.0635.

On the support side, EUR/USD needs to settle back below 1.0525 to have a chance to develop downside momentum in the near term. The next support level for EUR/USD is located at 1.0500. In case EUR/USD manages to settle below this level, it will move towards the next support, which is located near the recent lows at 1.0485.

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