Euro Gains Ground Against U.S. Dollar
EUR/USD is currently trying to settle above the resistance at 1.1460 while U.S. dollar remains under pressure against a broad basket of currencies.
The U.S. Dollar Index is testing the support level at 94.75. In case this test is successful, the U.S. Dollar Index will move towards the next support at 94.50 which will be bullish for EUR/USD. It should be noted that RSI for the U.S. Dollar Index remains in the moderate territory, so there is enough room to gain additional downside momentum in case the right catalysts emerge.
Today, foreign exchange market traders will focus on the economic data from U.S. Analysts expect that Retail Sales were unchanged on a month-over-month basis in December after growing by 0.3% in November. On a year-over-year basis, Retail Sales are expected to increase by 17%.
Traders will also take a look at Industrial Production and Manufacturing Production reports. Analysts expect that Industrial Production increased by 0.3% month-over-month in December. On a year-over-year basis, Industrial Production is projected to grow by 5.4%. Manufacturing Production is expected to increase by 4.7% year-over-year.
EUR/USD is currently testing the resistance at 1.1460. In case EUR/USD manages to settle above this level, it will move towards the next resistance level which is located at 1.1490. RSI remains in the moderate territory, and there is enough room to gain upside momentum in case the right catalysts emerge.
A move above the resistance at 1.1490 will open the way to the test of the next resistance at 1.1525. In case EUR/USD gets above this level, it will head towards the next resistance at 1.1550.
On the support side, a move below 1.1460 will push EUR/USD back towards the support level at 1.1420. In case EUR/USD manages to settle below this level, it will head towards the next support level which is located at 1.1390.
For a look at all of today’s economic events, check out our economic calendar.
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