EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.06% against the USD and closed at 1.3317.
Euro came under pressure, after Moody’s Investors Service cautioned that the rapid acceleration of the Euro-zone sovereign and banking crisis threatens the credit standing of all European government bond ratings.
However, investor sentiment received a boost, after the news that Germany and France were exploring radical methods of securing deeper and more rapid fiscal integration among Euro-zone countries that would make budget discipline legally binding and enforceable by European authorities.
In economic news, on an annual basis, the M3 money supply in the Euro-zone eased to 2.6% in October, compared to 3.0% growth recorded in September. In Germany, the Consumer Price Index (CPI) rose 2.4% (YoY), compared to 2.5% growth in the previous month. Additionally, the GfK Group reported that the Consumer Confidence Index rose to 5.6 points in December, following a revised 5.4 points in November.
In the Asian session, at GMT0400, the pair is trading at 1.3337, with the EUR trading 0.16% higher from yesterday’s close.
The pair is expected to find support at 1.3274, and a fall through could take it to the next support level of 1.321. The pair is expected to find its first resistance at 1.34, and a rise through could take it to the next resistance level of 1.3462.
With a series of Euro-zone economic releases today, including consumer confidence and industrial confidence, trading in the pair is expected to be influenced by the resulting cues from these releases.
The currency pair is showing convergence with its 50 Hr and is trading just below its 20 Hr moving average.
