EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.38% against the USD and closed at 1.3029, amid weak data from the Europe.
On a yearly basis, industrial production in the Euro-zone fell 1.2% in January, compared to a 1.8% decrease recorded in the previous month. Market had expected industrial production to fall 0.8% (YoY) in January. Additionally, on an annual basis, the Consumer Price Index (CPI) in the Euro-zone stood at 2.7% in February, unchanged from preliminary estimates and compared to upwardly revised 2.7% rise recorded in January.
Separately, German Chancellor Angela Merkel stated that European efforts to resolve the debt crisis are making progress, even as “imbalances” in Euro-area economies show that the task is far from complete
On the other hand, the Italian government successfully sold €5 billion of three-year bonds in an auction, with the yields declining to 2.76%, down from 3.41% in a February sale.
In the Asian session, at GMT0400, the pair is trading at 1.3031, with the EUR trading 0.02% higher from yesterday’s close.
The pair is expected to find support at 1.2993, and a fall through could take it to the next support level of 1.2956. The pair is expected to find its first resistance at 1.3080, and a rise through could take it to the next resistance level of 1.3128.
Trading trends in the pair today are expected to be determined by the release of ECB monthly report employment change and labor costs in the Euro-zone. Moreover, investors await France and Spain bond auction later in the day ahead.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
