EUR/USD Tests Support At 1.0850

Key Insights

• EUR/USD stays below strain forward of the weekend as merchants are anxious concerning the state of affairs within the European financial system.
• Rising Treasury yields have already pushed the U.S. greenback to yearly highs in opposition to a broad basket of currencies. 
• A profitable take a look at of the assist at 1.0850 will push EUR/USD in the direction of the following assist degree at 1.0810.

Euro Continues To Lose Floor In opposition to U.S. Greenback

EUR/USD is presently attempting to settle under the assist degree at 1.0850, whereas the U.S. greenback is gaining floor in opposition to a broad basket of currencies.

The U.S. Greenback Index is testing the resistance degree at 100. In case this take a look at is profitable, the U.S. Greenback Index will transfer in the direction of the following resistance degree at 100.30, which shall be bearish for EUR/USD.

Yesterday, EU reported that Euro Area Retail Sales elevated by 0.3% month-over-month in February, in comparison with analyst consensus of 0.6%. On a year-over-year foundation, Euro Space Retail Gross sales grew by 5%.

The market stays anxious concerning the destructive affect of excessive vitality costs and sanctions on Russia on the European financial system, and the euro is below sturdy strain. In the meantime, the yield of 10-year Treasuries moved to new highs, which was bullish for the U.S. greenback.

EUR/USD is testing the assist degree at 1.0850. In case this take a look at is profitable, EUR/USD will transfer in the direction of the following assist degree, which is positioned at 1.0810.

A transfer under the assist at 1.0810 will open the way in which to the take a look at of the assist at 1.0780. In case EUR/USD manages to settle under this degree, it’ll head in the direction of the following assist degree at 1.0760.

On the upside, the earlier assist degree at 1.0865 will function the primary resistance degree for EUR/USD. In case EUR/USD manages to settle again above this degree, it’ll head in the direction of the following resistance, which is positioned at 1.0885. A profitable take a look at of the resistance at 1.0885 will open the way in which to the take a look at of the following resistance at 1.0900.

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