EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.31% against the USD and closed at 1.2284.
With no major releases from the Euro-zone yesterday, market participants focused on the economic data from the US for the direction, the results of which were fairly mixed.
Data released in the US showed that industrial production rose 0.6% (MoM) in July, compared to a 0.1% rise in June. Additionally, capacity utilization for total industry moved to 79.3% in July, surpassing the market expectation of 79.2%. Moreover, inflation remained in check as consumer prices remained unchanged in July from June. Homebuilder confidence in the US has unexpectedly seen a continued improvement in the month of August, with the homebuilder confidence index reached a new five-year high. However, the conditions for New York manufacturers unexpectedly deteriorated in the month of August, according to a report released by the Federal Reserve Bank of New York yesterday, with the index of regional manufacturing activity turned negative for the first time in ten months.
Meanwhile, the Euro remained under pressure, after reports indicated that Greece wants two more years to implement its latest austerity program, and would formally ask European leaders for the extra time next week.
In the Asian session, at GMT0300, the pair is trading at 1.2289, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.2254, and a fall through could take it to the next support level of 1.2219. The pair is expected to find its first resistance at 1.2334, and a rise through could take it to the next resistance level of 1.2379.
Trading trends in the pair today are expected to be determined by the release of Euro-zone consumer price index which is expected to remain steady at 2.4% (YoY) in July.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
