Key Insights
EUR/USD moves higher after several unsuccessful attempts to settle below the support at 1.0960.
Today, traders will focus on the final reading of Michigan Consumer Sentiment report from the U.S.
A move above 1.1040 will push EUR/USD towards the resistance at 1.1060.
Euro Gains Ground Against U.S. Dollar
EUR/USD is currently trying to settle above the resistance at the 20 EMA at 1.1040, while the U.S. dollar is moving lower against a broad basket of currencies.
The U.S. Dollar Index has recently made an attempt to get to the test of the support level at 98.35 but lost momentum and rebounded towards 98.60. In case the U.S. Dollar Index settles above 98.60, it will head towards the resistance at 98.70, which will be bearish for EUR/USD.
Today, foreign exchange market traders will focus on the economic data from the U.S. Analysts expect that Pending Home Sales increased by 1% month-over-month in February after declining by 5.7% in January. On a year-over-year basis, Pending Home Sales are expected to decline by 11%.
Traders will also pay attention to the final reading of Michigan Consumer Sentiment report for March. The report is expected to show that Consumer Sentiment declined from 62.8 in February to 59.7 in March.
Technical Analysis
EUR/USD is testing the resistance at the 20 EMA at 1.1040. In case this attempt is successful, EUR/USD will move towards the next resistance, which is located at 1.1060.
A move above the resistance at 1.1060 will push EUR/USD towards the resistance at 1.1100. If EUR/USD manages to settle above this level, it will head towards the next resistance level at 1.1120.
On the support side, the previous resistance level at 1.1000 will serve as the first support level for EUR/USD. If EUR/USD declines below this level, it will move towards the support at the recent lows at 1.0960.
A successful test of the support at 1.0960 will open the way to the test of the next support level at 1.0930. In case EUR/USD manages to settle below 1.0930, it will head towards the support level 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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Source: https://finance.yahoo.com/news/eur-usd-rebounds-ahead-weekend-075238714.html