The trading price of the EUR/USD pair has improved tremendously in recent trading sessions. The data suggests that it is currently trading near the 1.0200 benchmarks.
Euro Gains Momentum after Posting Eurozone Sentix Data
The data surrounding the Eurozone Sentix was recently posted, showing that it has improved in the month of August.
A downtrend was recorded in the Eurozone Sentix data in the month of July but the situation seems to have changed its direction in August.
Now, the data has started improving, which has helped the euro gain momentum versus the dollar. From the beginning of August, the value of the euro has continued rising versus the dollar.
As of now, the trading value of the EUR has come close to the 1.0200 benchmarks in comparison to the greenback.
Risk-on Flows have Trimmed NFP-Inspired Gains
On Friday, the trading value of the USD had grown significantly against all major and bucket fiat currencies.
However, on Monday, the growth rate for the USD stopped as it rebounded a bit. It suggests that the positive impact of the NFP data from the United States has started fading.
It was on Thursday when the non-farm payroll data for the month of July was shared by the United States, which was way above expectations.
The following day, the trading value of the USD started to improve against all other major currencies. Currencies that were gaining momentum against the USD had started losing against it.
Now, the situation has started changing, and once again, all major currencies are gaining strength versus the USD.
Another reason why the EUR is gaining momentum against other currencies is because of the tensions between US-China. These tensions are also causing the trading value of the USD to fall into the negative zone.
EUR/USD Faced with Resistance
As the trading value of the EUR has continued rising, it is expected that soon, EUR will have to face resistance.
The technical analysis suggests that the trading price of the EUR/USD pair is set to face resistance as it comes close to the 1.0230 mark.
If the EUR successfully hits the particular mark versus the USD, then it will be off to hit the next resistance level. The next resistance level would be 200-period SMA, which is expected to be at 1.0250.
Once the euro hits the particular mark, the investors may start growing more interested in investing in the currency.
They may start investing heavily in the euro, which would help push the value of the euro versus the USD to 1.0300.
If things start going south for the pair, then the downstream movement of the pair would be 1.0150 and then 1.0100.