In This Article:
Key Insights
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EUR/USD moves higher as traders bet that high inflation will force ECB to raise rates sometime in summer.
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Today, traders will focus on the inflation reports from the EU.
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A successful test of the resistance at 1.0900 will push EUR/USD towards the next resistance at 1.0930.
Euro Continues 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 ground against a broad basket of currencies.
The U.S. Dollar Index is testing the support at the 100 level. In case this test is successful, the U.S. Dollar Index will move towards the next support at 99.75, which will be bullish for EUR/USD.
Today, foreign exchange market traders will focus on the final reading of Euro Area inflation reports for March. Analysts expect that Euro Area Inflation Rate increased by 2.5% month-over-month after growing by 0.9% in February. On a year-over-year basis, Euro Area Inflation Rate is projected to grow by 7.5%. Euro Area Core Inflation Rate is projected to increase by 3% year-over-year.
Traders will also have a chance to take a look at the flash reading of Euro Area Consumer Confidence report for April. Analysts expect that Euro Area Consumer Confidence declined from -18.7 in March to -20 in April.
Technical Analysis
EUR/USD is testing the resistance at 1.0900. In case 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 push EUR/USD towards the resistance at 1.0960. If EUR/USD manages to settle above 1.0960, it will head towards the next resistance at the 50 EMA at 1.0990.
On the support side, a move below 1.0900 will lead to the test of the support at the 20 EMA at 1.0890. In case EUR/USD declines below the 20 EMA, it will head towards the support level at 1.0865. A successful test of this level will push EUR/USD towards the support at 1.0850.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire