For the 24 hours to 23:00 GMT, EUR rose 1.00% against the USD and closed at 1.3108, after the European Central Bank (ECB) left benchmark interest rates unchanged at 0.75%, in line with the market expectations. Furthermore, the ECB President, Mario Draghi, remained optimistic and indicated that economic activity in the Euro-area would pick momentum in the later part of 2013, supported by a strengthening of global demand and central bank’s accommodative monetary policy stance.
Successful bond auction in Spain earlier in European trading hours also supported Euro gains. Moreover, improving jobs data in the US further encouraged investor to pull out of the safe haven greenback and venture into riskier currencies.
In economic news, German factory orders fell unexpectedly in January, while French trade deficit widened in January.
In the Asian session, at GMT0400, the pair is trading at 1.3092, with the EUR trading 0.12% lower from yesterday’s close.
The pair is expected to find support at 1.3010, and a fall through could take it to the next support level of 1.2929. The pair is expected to find its first resistance at 1.3146, and a rise through could take it to the next resistance level of 1.3201.
Today investors remain focused on the job related data due in US today i.e. the US nonfarm payrolls and the unemployment rate.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.