Euro Gains Ground Against U.S. Dollar
EUR/USD is currently trading near the support level at 1.1420 while U.S. dollar is losing some ground against a broad basket of currencies.
The U.S. Dollar Index has recently made an attempt to settle above the resistance at 95.20 but failed to develop sufficient upside momentum and pulled back. The nearest support level for the U.S. Dollar Index is located at 95. In case the U.S. Dollar Index gets to the test of this level, EUR/USD will get more support.
There are no important economic reports scheduled to be released in the U.S. and EU today, so it remains to be seen whether foreign exchange market traders will be ready for big moves.
It should be noted that the yield of 2-year Treasuries is already close to the psychologically important 1.00% level, but the recent rise in yields failed to provide support to the American currency.
Traders look ready to push yields higher which could be bullish for the U.S. dollar, but is unclear whether the American currency will react to such a move given the recent trading action.
EUR/USD is currently trying to settle back above 1.1420. In case this attempt is successful, EUR/USD will gain upside momentum and move towards the next resistance level at 1.1460. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.
In case EUR/USD settles above 1.1460, it will head towards the resistance at 1.1490. A move above this level will push EUR/USD towards the resistance at 1.1525.
On the support side, a move below 1.1400 will push EUR/USD towards the support level at 1.1390. If EUR/USD declines below this level, it will head towards the support at the 50 EMA at 1.1370. A successful test of the support at the 50 EMA will open the way to the test of the next support at 1.1350.
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