EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.21% against the USD and closed at 1.2234.
Macroeconomic data indicated that Germany’s Ifo business climate index declined more-than-anticipated to a level of 102.1 in April, hitting its lowest level since March 2017, thus suggesting that the upbeat mood amongst German businesses is waning. In the prior month, the index had registered a level of 103.3, while markets had expected for a fall to a level of 102.8. Moreover, the nation’s Ifo business expectations index eased to a level of 98.7 in April, compared to a revised level of 100.0 in the prior month. Market expectation was for the index to drop to a level of 99.5. Additionally, the nation’s Ifo current assessment index fell more-than-anticipated to a level of 105.7 in April, compared to market consensus for a drop to a level of 106.0. In the prior month, the index had recorded a revised level of 106.6.
In the US, data revealed that the CB consumer confidence index recorded an unexpected rise to a level of 128.7 in April, as Americans grew more optimistic about both current conditions and the near-term outlook. The index had registered a revised reading of 127.0 in the prior month, while investors had envisaged for a fall to a level of 126.0. Furthermore, the nation’s new home sales surprisingly advanced 4.0% on a monthly basis, to a level of 694.0K in March, surging to an 11-month high level, thus boosting optimism over the health of the nation’s housing sector. New home sales had recorded a revised reading of 667.0K in the previous month, while markets were anticipating new home sales to fall to a level of 630.0K.
In the Asian session, at GMT0300, the pair is trading at 1.2226, with the EUR trading 0.07% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.2190, and a fall through could take it to the next support level of 1.2155. The pair is expected to find its first resistance at 1.2253, and a rise through could take it to the next resistance level of 1.2281.
With no macroeconomic releases in the Euro-zone today, investors would direct their attention to the US MBA mortgage applications data, slated to release later today.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
