EUR/USD: Euro trading a tad higher in the Asian session


EURUSD Movement

For the 24 hours to 23:00 GMT, the EUR slightly declined against the USD and closed at 1.1133.

In the US, data showed that the second estimate of annualised gross domestic product (GDP) advanced 3.1% on a quarterly basis in 1Q 2019, in line with market expectations. In the prior quarter, the annualised GDP had recorded a gain of 2.2%, while preliminary figures had indicated a rise of 3.2%. Moreover, the nation’s pending home sales rose 0.4% on a yearly basis in April, compared to a revised fall of 3.1% in the previous month. Market participants had anticipated pending home sales to record an increase of 0.1%. Meanwhile, the US advance goods trade deficit widened to $72.1 billion in April, following a revised deficit of $71.3 billion in the prior month. Market participants had envisaged the nation to record a deficit of $72.7 billion. Further, the seasonally adjusted initial jobless claims jumped to a level of 215.0K on a weekly basis in the week ended 25 May 2019, compared to a revised level of 212.0K in the previous week. Market participants had expected initial jobless claims to advance to a level of 214.0K. Moreover, pending home sales unexpectedly dropped 1.5% on a monthly basis in April. In the prior month, pending home sales had advanced by a revised 3.9%.

In the Asian session, at GMT0300, the pair is trading at 1.1135, with the EUR trading a tad higher against the USD from yesterday’s close.

The pair is expected to find support at 1.1120, and a fall through could take it to the next support level of 1.1104. The pair is expected to find its first resistance at 1.1147, and a rise through could take it to the next resistance level of 1.1158.

Moving ahead, traders would await Germany’s retail sales for April and the consumer price index for May, set to release in a few hours. Later in the day, the US personal income and personal spending, both for April along with the Chicago Purchasing Managers’ Index and the Michigan consumer sentiment index, both for May, will garner significant amount of investors’ attention.

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

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