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EUR/USD Tests Resistance At 1.1000

Key Insights

  • Euro continues to rebound against the American currency.

  • Traders will focus on the Euro Area Economic Sentiment Index and U.S. Producer Prices reports.

  • A move above 1.1000 will push EUR/USD towards the next resistance at 1.1035.

Euro Moves Higher Against U.S. Dollar

EUR/USD is currently trying to settle above the resistance at 1.1000, while the U.S. dollar is under pressure against a broad basket of currencies.

The U.S. Dollar Index declined below the 99 level and is trying to gain additional downside momentum. In case this attempt is successful, the U.S. Dollar Index will get to the test of the support at 98.70, which will be bullish for EUR/USD.

Today, foreign exchange market traders will have a chance to take a look at the Euro Area ZEW Economic Sentiment Index for March. Analysts expect that Economic Sentiment declined from 48.6 in February to 15 in March.

Euro Area Industrial Production is expected to grow by 0.1% month-over-month in January. On a year-over-year basis, Euro Area Industrial Production is expected to decline by 0.5%.

In the U.S., Producer Prices report is projected to indicate that Producer Prices increased by 0.9% month-over-month in February. This report may have a material impact on currency dynamics as traders are laser-focused on any inflation data.

Technical Analysis

EUR/USD is testing the resistance level at 1.1000. If this test is successful, EUR/USD will move towards the next resistance, which is located at 1.1035.

A move above the resistance at 1.1035 will push EUR/USD towards the resistance at the 20 EMA at 1.1060. If EUR/USD gets above this level, it will head towards the next resistance level at 1.1100.

On the support side, EUR/USD needs to get back below 1.1000 to have a chance to gain downside momentum in the near term. The next support level for EUR/USD is located at 1.0960.

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

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

This article was originally posted on FX Empire

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