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EUR/USD Tests Support At 1.1150

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·2 min read
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Euro Remains Under Pressure Against U.S. Dollar

EUR/USD is currently trying to settle below the support level at 1.1150 while U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get above the resistance at 97.25 and is moving towards the next resistance level at 97.45. If 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 have a chance to take a look at economic data from EU. Analysts expect that Euro Area Industrial Sentiment improved from 14.9 in December to 15 in January while Euro Area Services Sentiment declined from 11.2 to 10.3 due to the spread of Omicron.

EU will also release the final reading of Euro Area Consumer Confidence report which is projected to show that Euro Area Consumer Confidence declined from -8.4 in December to -8.5 in January.

It should be noted that Treasury yields keep moving higher as bond traders expect aggressive rate hikes from the Fed. In case this trend remains intact in the upcoming trading sessions, U.S. dollar will get more support.

Technical Analysis

EUR/USD is currently testing the support level at 1.1150. In case EUR/USD manages to settle below this level, it will get to the test of the next support level which is located at 1.1120.

A move below the support at 1.1120 will push EUR/USD towards the support at 1.1100. If EUR/USD declines below this level, it will head towards the next support level at 1.1060.

On the upside, a move above 1.1150 will push EUR/USD back to the resistance at 1.1170. In case EUR/USD manages to settle back above this level, it will head towards the resistance at 1.1200. A successful test of the resistance at 1.1200 will open the way to the test of the next resistance at 1.1230.

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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