EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.27% against the USD and closed at 1.3156, after
Euro-zone Finance Ministers gave their final approval to a €130 billion second bailout for Greece and turned their attention on Spain, demanding it aim for a tougher deficit target this year in order to get back on target in 2013.
The Chairman of Euro-zone Finance Ministers, Jean-Claude Juncker stated that “We expect Spain would achieve its budget goals in 2013 and that it wants to achieve them.”
Meanwhile, Wholesale Price Index (WPI) in Germany rose 2.6% (YoY) in February, compared to a rate of 3.0% recorded in January.
According to the Bundesbank, Germany raised €3.493 billion from the auction of “Bubills” with 6-month maturity at an average yield of 0.0531%, down from 0.0761% in the last auction.
During the day, Euro came under pressure after Italy’s Q4 GDP finalisation came in at -0.7%, confirming the economy is in recession, and after the German Finance Minister stated that a third Greek bailout cannot be excluded.
In the Asian session, at GMT0400, the pair is trading at 1.3180, with the EUR trading 0.18% higher from yesterday’s close.
The pair is expected to find support at 1.3109, and a fall through could take it to the next support level of 1.3038. The pair is expected to find its first resistance at 1.3221, and a rise through could take it to the next resistance level of 1.3263.
Trading trends in the pair today are expected to be determined by the release of ZEW Survey for Germany and the Euro-zone.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
