EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.93% against the USD and closed at 1.3274, as Greek debt hopes and strong German economic data aided risk appetite and provided strength to the Euro.
The EUR received a boost amid reports that private investors agreed to swap about 85.0% of their Greek government bonds for new securities.
Adding to the positive sentiment, European Central Bank President, Mario Draghi pointed to progress in the Euro-zone’s economy and financial markets, easing some worries that the region’s sovereign-debt crisis may spread further.
Meanwhile, the European Central Bank (ECB) kept its benchmark interest rate unchanged at 1.0%, in line with market expectations.
On the economic front, German industrial production climbed 1.6% (MoM) in January, compared to a revised 2.6% decline in December. Additionally, the trade deficit in France increased to €5.324 billion in January, while payroll employment in France dropped 0.1% in the 4Q FY2011.
In the Asian session, at GMT0400, the pair is trading at 1.3267, with the EUR trading 0.06% lower from yesterday’s close.
The pair is expected to find support at 1.3184, and a fall through could take it to the next support level of 1.3101. The pair is expected to find its first resistance at 1.3321, and a rise through could take it to the next resistance level of 1.3375.
Trading trends in the pair today are expected to be determined by the release of German Consumer Price Index and Trade Balance. French industrial and manufacturing production are also awaited.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
