EUR/USD: Euro reverses its gains against the USD in the morning session


EURUSD Movement

For the 24 hours to 23:00 GMT, the EUR rose 0.21% against the USD and closed at 1.1000 yesterday, after the Euro-zone economic sentiment index rose more than expected to 102.50 in January, as confidence among regional manufacturers rose, while unemployment dropped to 7.4%, its lowest since May 2008, in the month of December. Meanwhile, in the US, the annualised gross domestic product (GDP) rose in line with market expectations in 4Q19, after receiving a significant boost from a temporary decline in imports. Also, initial jobless claims fell last week, pointing to continued labour market strength, though applications for the prior week were much higher than initially estimated.

In the Asian session, at GMT0400, the pair is trading at 1.1024, with the EUR trading 0.07% lower against the USD from yesterday’s close.

The pair is expected to find support at 1.1008, and a fall through could take it to the next support level of 1.0991. The pair is expected to find its first resistance at 1.1040, and a rise through could take it to the next resistance level of 1.1055.

Trading trends in the pair today are expected to be determined by the release of the Euro-zone 4Q19 GDP and consumer price index for January, along with German retail sales data for December. Also, the release of the US Chicago PMI and Michigan consumer sentiment index for January later in the day will keep investors on their toes.

The currency pair is trading below its 20 Hr moving average and is trading above its 50 Hr moving average.

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