EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined marginally against the USD and closed at 1.2364, amid jitters over the Irish referendum, looming Greek elections and continued worries over Spain’s faltering banking sector.
Yesterday, Ireland voted on a key European Union’s stability treaty pact, with votes set to be counted today.
Earlier, reports emerged that the International Monetary Fund (IMF) has started talks with Spain for a loan in case the nation fails to find funds to bailout Bankia. However, later the head of the IMF, Christine Lagarde indicated that Spain had not approached the agency for any financial support.
Meanwhile in economic news, German retail sales rose 0.6% (MoM) in April, surpassing the market expectation for a 0.2% rise. Additionally, on a seasonally adjusted basis, the unemployment rate in the nation declined to 6.7% in May, from 6.8% in April. Moreover in Euro-zone, the preliminary inflation fell to 2.4% (YoY) in May, easing from April’s 2.6% reading.
Separately, European Central Bank President (ECB), Mario Draghi, stated that the Euro-zone is unsustainable in its current form, stating that the region needs to come up with a new vision to get out of the current financial crisis.
In the Asian session, at GMT0300, the pair is trading at 1.2351, with the EUR trading 0.11% lower from yesterday’s close.
The pair is expected to find support at 1.2307, and a fall through could take it to the next support level of 1.2263. The pair is expected to find its first resistance at 1.2412, and a rise through could take it to the next resistance level of 1.2472.
Trading trends in the pair today are expected to be determined by the release of manufacturing purchasing manager in Germany, France and Euro-zone.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
