EUR/USD: Euro-zone’s Sentix investor sentiment hit a decade high level in October


EURUSD Movement

For the 24 hours to 23:00 GMT, the EUR marginally rose against the USD and closed at 1.1740.

In economic news, data showed that the Euro-zone’s Sentix investor confidence index advanced more-than-expected to a level of 29.7 in October, notching a ten-year high level, suggesting that investors shrugged off worries of political instability across the common currency region. The index had recorded a level of 28.2 in the prior month, while markets had anticipated for an increase to a level of 28.5.

Separately, Germany’s seasonally adjusted industrial production rebounded 2.6% MoM in August, growing at its quickest pace since July 2011 and hinting that industrial sector will remain one of the bright spots for the Euro-bloc’s largest economy. Markets had expected industrial production to gain 0.9%, compared to a revised drop of 0.1% in the prior month.

In the Asian session, at GMT0300, the pair is trading at 1.1770, with the EUR trading 0.24% higher against the USD from yesterday’s close.

The pair is expected to find support at 1.1733, and a fall through could take it to the next support level of 1.1695. The pair is expected to find its first resistance at 1.1795, and a rise through could take it to the next resistance level of 1.1819.

Moving ahead, investors will keep a close watch on Germany’s trade balance figures for August, slated to release in a few hours. Moreover, the US NFIB small business optimism index for September, due to release later in the day, would be on investors’ radar.

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

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