EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 1.04% against the USD and closed at 1.3259, on expectations that Greek political leaders would come to an agreement on the bailout terms and avoid a sovereign debt default.
Moreover, President of the Euro group of Finance Ministers, Jean-Claude Juncker, stated that he was confident that Greece would remain in the single currency bloc, provided the country fulfills its obligations to other bloc members.
Additionally, successful Greece bond auction, aided trading sentiment towards the Euro. Greece debt agency, PDMA, sold more debt than it had targeted at an auction, with yield on the 6-month paper declining to 4.86% from 4.90% in the previous auction on January 10.
However, EUR pared some of its gains after German industrial production unexpectedly declined 2.9% (MoM) in December, marking the steepest decline since January 2009. Also, the trade deficit in France widened to €4.99 billion in December, from a deficit of €4.14 billion in November.
In the Asian session, at GMT0400, the pair is trading at 1.3245, with the EUR trading 0.11% lower from yesterday’s close.
The pair is expected to find support at 1.3133, and a fall through could take it to the next support level of 1.3021. The pair is expected to find its first resistance at 1.3313, and a rise through could take it to the next resistance level of 1.3382.
Trading trends in the pair today are expected to be determined by the release of trade balance data and bond auction of additional €4 billion 5-Year Notes in Germany.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
