EUR/USD: Euro reverses its gains in the Asian session


EURUSD Movement

For the 24 hours to 23:00 GMT, the EUR rose 0.28% against the USD and closed at 1.1583.

In the US, data showed that the US NY Empire State manufacturing index climbed to a level of 21.1 in October, more than market consensus for a rise to a level of 20.0. In the prior month, the index had recorded a level of 19.0. Moreover, the nation’s business inventories rose 0.5% on a monthly basis in August, at par with market expectations. Business inventories had recorded a revised gain of 0.7% in the preceding month. Additionally, US advance retail sales jumped 0.1% on a monthly basis in September, following a similar rise in the previous month. Market participants had anticipated for advance retail sales to rise 0.6%.

In the Asian session, at GMT0300, the pair is trading at 1.1574, with the EUR trading 0.08% lower against the USD from yesterday’s close.

The pair is expected to find support at 1.1543, and a fall through could take it to the next support level of 1.1511. The pair is expected to find its first resistance at 1.1606, and a rise through could take it to the next resistance level of 1.1637.

Looking forward, traders would await the Euro-zone’s trade balance data for August and ZEW economic sentiment for October, followed by Germany’s ZEW current situation for October, all set to release in a few hours. Later in the day, the US industrial production for September and NAHB housing market index for October, will garner significant amount of investor attention.

The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.

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