- EUR/USD is trying to gain additional downside momentum at the start of the week.
- Today, traders will focus on the dynamics of Treasury markets and economic reports from the U.S.
- A move below 1.0500 will push EUR/USD towards the support level at 1.0485.
Euro Is Moving Lower Against U.S. Dollar
EUR/USD continues its attempts to settle below the support at 1.0500, while the U.S. dollar is moving higher against a broad basket of currencies.
The U.S. Dollar Index has recently managed to get above the 104 level and is trying to develop additional upside momentum. In case this attempt is successful, the U.S. Dollar Index will move towards the resistance level at 104.25, which will be bearish for EUR/USD.
There are no important economic reports scheduled to be released in the EU today, so foreign exchange market traders will focus on the Wholesale Inventories and Consumer Inflation Expectations reports from the U.S.
Analysts expect that Wholesale Inventories increased by 2.3% month-over-month in March. Consumer Inflation Expectations are projected to rise from 6.6% in March to 6.8% in April.
Traders will also keep an eye on the developments in U.S. government bond markets as Treasury yields are testing new highs, which is bullish for the American currency.
EUR/USD is testing the support level at 1.0500. If EUR/USD manages to settle below this level, it will head towards the next support level at 1.0485.
A move below the support at 1.0485 will open the way to the test of the support level at 1.0460. In case EUR/USD declines below this level, it will head towards the next support, which is located at 1.0430.
On the upside, a move above 1.0525 will push EUR/USD towards the resistance level at 1.0550. In case EUR/USD gets back above this level, it will head towards the next resistance, which is located at 1.0580. A move above this level will open the way to the test of the resistance at 1.0600.
For a look at all of today’s economic events, check out our economic calendar.