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


EURUSD Movement

For the 24 hours to 23:00 GMT, the EUR rose 0.77% against the USD and closed at 1.1405.

In the US, data indicated that the US final Markit manufacturing PMI climbed to a level of 55.7 in October, compared to a level of 55.6 in the previous month. The preliminary figures had recorded an advance to 55.9. Moreover, the nation’s seasonally adjusted initial jobless claims declined to a level of 214.0K, less than market expectations for a fall to a level of 212.0K. Initial jobless claims had registered a revised reading of 216.0K in the previous week. Additionally, the US ISM manufacturing activity index slid to a six-month low level of 57.7 in October, for the second consecutive month and compared to a level of 59.8 in the previous month. Market participants had envisaged the index to drop to a level of 59.0. Meanwhile, construction spending recorded a flat reading on a monthly basis in September, meeting market expectations.

In the Asian session, at GMT0400, the pair is trading at 1.1399, with the EUR trading 0.05% lower against the USD from yesterday’s close.

The pair is expected to find support at 1.1350, and a fall through could take it to the next support level of 1.1301. The pair is expected to find its first resistance at 1.1436, and a rise through could take it to the next resistance level of 1.1473.

Looking forward, investors would closely monitor the Markit Manufacturing PMI for October set to release across the euro-bloc in a few hours. Later in the day, the US trade balance, factory orders and durable goods orders, all for September along with non-farm payrolls, unemployment rate and average hourly earnings, all for October, will garner significant amount of investors’ attention.

The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.

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