In This Article:
Key Insights
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EUR/USD is trying to gain upside momentum at the start of the week.
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Today, traders will focus on comments from Fed officials.
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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 Attempts To Rebound Against U.S. Dollar
EUR/USD is currently trying to settle back above 1.0900, while the U.S. dollar is mostly flat against a broad basket of currencies.
The U.S. Dollar Index has recently made another attempt to settle above the resistance level at 100 but failed to develop sufficient upside momentum and pulled back. The nearest support level for the U.S. Dollar Index is located at 99.75. In case the U.S. Dollar Index declines below this level, it will move towards the next support at 99.45, which will be bullish for EUR/USD.
There are no important economic reports scheduled to be released today in the U.S. and EU, so foreign exchange market traders will focus on the comments from Fed’s Bostic and Bowman.
Traders will also continue to monitor the developments in U.S. government bond markets, as Treasury yields are testing new highs. The continuation of the current trend may provide additional support to the American currency.
Technical Analysis
EUR/USD is testing the resistance level at 1.0900. In case this test is successful, EUR/USD will move towards the next resistance, which is located near the recent highs at 1.0930.
A move above the resistance at 1.0930 will open the way to the test of the next resistance level at 1.0960. If EUR/USD gets above this level, it will head towards the 20 EMA at 1.0975. A successful test of the resistance at the 20 EMA will open the way to the test of the next resistance at 1.0990.
On the support side, EUR/USD needs to settle below 1.0900 to have a chance to gain downside momentum in the near term. The next support level for EUR/USD is located at 1.0885.
If EUR/USD declines below the support at 1.0885, it will move towards the next support 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