EUR/USD

EUR/USD Tests Support At 1.0730

Key Insights

  • EUR/USD remains under pressure at the start of the week. 
  • Traders believe that the Fed will be forced to raise rates aggressively, which is bullish for the American currency. 
  • A successful test of the support at 1.0730 will open the way to the test of the next support level at 1.0700.

Euro Is Losing Ground Against U.S. Dollar

EUR/USD is currently trying to settle below the support level at 1.0730, while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index is testing the resistance level at 101.55. If the U.S. Dollar Index manages to settle above this level, it will head towards the next resistance at 101.75, which will be bearish for EUR/USD.

Today, foreign exchange market traders will have a chance to take a look at the Euro Area Construction Output report for February. Analysts expect that Euro Area Construction Output increased by 5% on a year-over-year basis. It remains to be seen whether this report will have any impact on currency dynamics as the economic situation has significantly changed in March.

Traders will also stay focused on general market sentiment, which is pushing the U.S. dollar higher. Fed’s recent hawkish commentary remains the key driver for the American currency.

Technical Analysis

eur usd april 25 2022

EUR/USD is testing the support level at 1.0730. In case this test is successful, EUR/USD will head towards the support at 1.0700. RSI is close to the oversold territory, but there is enough room to gain additional downside momentum in case the right catalysts emerge.

If EUR/USD settles below the support at 1.0700, it will head towards the next support level at 1.0680. A move below this level will open the way to the test of the support at 1.0650.

On the upside, a move above 1.0730 will push EUR/USD back to the resistance at 1.0760. If EUR/USD gets above this level, it will head towards the next resistance level at 1.0780. A successful test of the resistance at 1.0780 will open the way to the test of the resistance at 1.0810.

For a look at all of today’s economic events, check out our economic calendar.