The U.S. dollar managed to hold on to the gains on the last trading day of the month. On the economic front, the personal consumption expenditure data showed a 0.2% increase on the month in February. This was a modest increase from 0.1% in January. New home sales rose 4.9% in February.
Will the Euro Move Higher?
The EURUSD currency pair has been trading subdued as it approached the support area of 1.1217. The Stochastics have turned flat near the oversold levels and this could indicate a modest bounce to the upside. The near term support at 1.1294 remains a key level of interest to the upside. If the euro fails to recover off the current support, we expect a test of 1.1174 to the downside.
