- EUR/USD tests levels above 1.1130, confirming short-term bullish tone.
- German inflation data for March is coming, followed by US employment data.
- The dollar falls for the second consecutive day in the market.
The EUR/USD resumed the bullish run after the correction in the American session on Tuesday and gained momentum after breaking above 1.1135. The pair climbed to 1.1161, the highest level since March 1. It then pulled back but remained above 1.1100 throughout, supported by dollar weakness.
The greenback fell for the second day in a row, even despite the rise in Treasury bond yields. The 10-year rate is at 2.40%, after falling to 2.34% on Tuesday.
The climate of optimism in the markets due to the supposed advances in the talks between Russia and Ukraine It disappears, but without generating falls. This contributes to the good moment of the euro. The common currency is also helped by the change in expectations from the European Central Bank.
If the EUR/USD continues at these levels, it will maintain the bullish momentum, especially if it closes above 1.1150. Resistance can be found at 1.1175, and then at 1.1220. Possible supports are at 1.1095, followed by 1.1070 and 1.1040.
data ahead
Regarding data, the Eurozone consumer confidence report was released, which showed mixed data: the economic sentiment indicator went from 113.9 to 108.5 (consensus: 109), while consumer confidence stood at -18.7 . German inflation figures for March will be released later.
In the US, the round of data from employment with the ADP report, which is expected to show an increase of 450,000 in jobs. Then it will be time for a new estimate of growth of the Fourth quarter GDP. The official employment report for March will be released on Friday.
Expectations of a more pronounced adjustment by the Federal Reserve are once again gaining ground in the market, although at this time they are not favoring the dollar. It is also estimated that the European Central Bank you will be forced to make adjustments sooner than previously expected. On Wednesday, two Fed regional bank presidents, Barkin and George, will speak in public.
Technical levels
Source: Fx Street
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