EUR/USD is currently trying to settle back above 1.1370 while the US dollar is losing some ground against a broad basket of currencies.
The US dollar index is currently stuck in the 95.40 – 95.50 range. In case it declines below 95.40, it will move towards the next support level at 95.20, which will be bullish for EUR/USD.
Today, foreign exchange market traders had eyes on the third-quarter Eurozone GDP Growth Rate report. The report showed that the bloc grew by 2.2% quarter-over-quarter.
Meanwhile, the Eurozone employment change report indicated that employment increased by 0.9% in the third quarter.
In the US, traders will focus on the retail sales report for October. Analysts expect an increase of 1.2% month-over-month after growing by 0.7% in September. On a year-over-year basis, retail sales are projected to grow by 12%.
The US industrial production is expected to grow by 0.7% month-over-month in October, while manufacturing production is also expected to increase by 0.7%.
The US retail sales report will show whether consumers’ worries about inflation have put retail sales under pressure.
Technical Analysis
EUR/USD is testing the resistance level at 1.1370. If this test is successful, EUR/USD will move towards the next resistance level, located at 1.1400.
If EUR/USD manages to settle above the resistance at 1.1400, it will continue its rebound and head towards the next resistance at 1.1425. A successful test of this level will open the way to the test of the resistance at 1.1450.
On the support side, the nearest support level for EUR/USD is located at 1.1350. If EUR/USD manages to settle below this support level, it will head towards the next support at 1.1325.
A move below 1.1325 will push EUR/USD towards the support, which is located at 1.1300.