- EUR/USD is moving higher ahead of the release of economic data from the EU.
- Traders will focus on the final readings of Euro Area Manufacturing PMI and Euro Area Consumer Confidence reports.
- A move above 1.0550 will push EUR/USD towards the resistance at 1.0580.
Euro Is Gaining Ground Against U.S. Dollar
EUR/USD is currently trying to settle back above the resistance at 1.0550, while the U.S. dollar is moving higher against a broad basket of currencies.
The U.S. Dollar Index is currently trying to settle below the support level at 103.25. In case this attempt is successful, the U.S. Dollar Index will move towards the support at 103, which will be bullish for EUR/USD.
On Friday, EU reported that Euro Area Inflation Rate increased by 0.6% month-over-month in April, compared to analyst consensus of 0.5%. On a year-over-year basis, Euro Area Inflation Rate grew by 7.5%. Euro Area Core Inflation Rate increased by 3.5% year-over-year, compared to analyst consensus which called for growth of 3.2%.
While Euro Area inflation reports exceeded analyst expectations, they failed to provide significant support to the European currency as foreign exchange market traders remained focused on the weakness of the European economy.
Today, traders will have a chance to take a look at the final reading of the Euro Area Manufacturing PMI report for April. The report is expected to show that Euro Area Manufacturing PMI declined from 56.5 in March to 55.3 in April. Meanwhile, the final reading of Euro Area Consumer Confidence report is expected to show that Euro Area Consumer Confidence improved from -18.7 in March to -16.9 in April.
EUR/USD failed to settle below the support at 1.0525 and moved back towards the resistance level at 1.0550. In case EUR/USD settles above 1.0550, it will move towards the resistance at 1.0580.
A move above the resistance at 1.0580 will push EUR/USD towards the resistance at 1.0600. In case EUR/USD manages to settle above this level, it will head towards the next resistance at 1.0635.
On the support side, the nearest support level for EUR/USD is located at 1.0525. If EUR/USD settles below this level, it will head towards the next support level at 1.0500. A move below the support at 1.0500 will open the way to the test of the support at 1.0485.
For a look at all of today’s economic events, check out our economic calendar.