EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.66% against the USD and closed at 1.2594, as investor sentiment was dented amid mounting worries over the Greece’s possible exit from the Euro-zone.
The European Union leaders at the summit in Brussels expressed their desire to keep Greece in the Euro bloc if it adheres to the austerity measures. However, they failed to agree on the introduction of Euro bonds.
Meanwhile, the Germany’s Bundesbank stated that the impact of a Greek exit from the Euro-zone would be substantial but ‘manageable’, raising pressure on Athens to keep its painful economic reforms on track.
On the economic front, in Euro-zone, industrial new orders on a seasonally adjusted basis rose unexpectedly 1.8% in March, after falling 1.2% in February, making it first rise in the three months. Separately, on a seasonally adjusted basis, the Euro-zone current account recorded a surplus of €9.1 billion in March, compared to a deficit of €1.2 billion in February.
In a bond auction, Germany sold €4.56 billion of the new two-year bonds of a zero percent coupon, at an average yield of just 0.07%, which was reportedly the lowest on record for similar securities.
In the Asian session, at GMT0300, the pair is trading at 1.2577, with the EUR trading 0.13% lower from yesterday’s close.
The pair is expected to find support at 1.2519, and a fall through could take it to the next support level of 1.2461. The pair is expected to find its first resistance at 1.2661, and a rise through could take it to the next resistance level of 1.2745.
Trading trends in the pair today are expected to be determined by the release of gross domestic product, retail sales, purchasing manager index (PMI) and business climate data in Germany
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
