Key Insights
EUR/USD is moving lower ahead of the Euro Area ZEW Economic Sentiment Index report.
Inflation data from the U.S. will also have a significant impact on currency dynamics today.
A move below the support at 1.0865 will push EUR/USD towards the next support level at 1.0850.
Euro Is Under Pressure Against U.S. Dollar
EUR/USD is currently trying to settle below the support level at 1.0865, while the U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index managed to settle above the resistance at the 100 level and is trying to develop additional upside momentum. In case this attempt is successful, the U.S. Dollar Index will get to the test of the next resistance at 100.30, which will be bearish for EUR/USD.
Today, foreign exchange market traders will have a chance to take a look at the Euro Area ZEW Economic Sentiment Index report for April. Analysts expect that Euro Area ZEW Economic Sentiment Index improved from -38.7 in March to -28 in April.
In the U.S., traders will focus on inflation data. Analysts expect that Inflation Rate grew by 8.4% year-over-year in March. Core Inflation Rate is expected to increase by 6.6% year-over-year. The reports will have a material impact on currency dynamics, so traders should be prepared for fast moves.
Technical Analysis
EUR/USD is testing the support level at 1.0865. In case this test is successful, EUR/USD will get to the test of the next support level, which is located at 1.0850.
A move below the support at 1.0850 will open the way to the test of the next support at 1.0810. If EUR/USD declines below this level, it will head towards the next support level at 1.0780. A successful test of this level will push EUR/USD towards the support at 1.0760.
On the upside, the nearest resistance level for EUR/USD is located at 1.0885. If EUR/USD manages to climb back above this level, it will head towards the resistance at 1.0900. A successful test of the resistance at 1.0900 will open the way to the test of the resistance at 1.0930.
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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Source: https://finance.yahoo.com/news/eur-usd-losing-ground-unsuccessful-073701752.html