EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.70% against the USD and closed at 1.3167, amid concerns that the obstacles are still in the way for Greece to secure a second bailout from its creditors. Even though Greek lawmakers passed austerity measures, it remains uncertain whether spending cuts could be implemented.
To add to concerns, Moody’s Investors Service cut its sovereign debt ratings on Italy, Portugal, Slovakia, Slovenia and Malta by one level and cut Spain’s rating by two notches. The ratings agency also issued ‘Negative’ outlook for France, the UK and Austria.
However, on Tuesday, Moody’s affirmed its provisional Aaa long-term debt rating on the European Financial Stability Facility (EFSF), with a continued ‘Stable’ outlook for the debt issuance program.
On the economic front, German Wholesale Price Index advanced 3.0% (YoY) in January, the same rate of growth recorded in the December.
Meanwhile, Euro-zone Finance Ministers are meeting tomorrow to decide whether or not Greece should be approved for its second economic bailout package.
In the Asian session, at GMT0400, the pair is trading at 1.3162, with the EUR trading 0.03% lower from yesterday’s close.
The pair is expected to find support at 1.3110, and a fall through could take it to the next support level of 1.3059. The pair is expected to find its first resistance at 1.3249, and a rise through could take it to the next resistance level of 1.3336.
Trading trends in the pair today are expected to be determined by the release of Euro-zone industrial production and ZEW Survey for economic sentiment and current situation in Germany as well as in the Euro-zone.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
