EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.18% against the USD and closed at 1.2800, as investors opted for the safe haven greenback ahead of the Presidential elections in the US later today. Moreover, risk sentiment among market participants took a hit on prevalent concerns that Greece would struggle to secure further aid.
Yesterday, the Greek government had sought approval for an austerity plan calling for €13.5 billion in spending cuts and tax hikes from Parliament. The Parliamentary Committee would consider the austerity package on Tuesday and then put to a full vote on Wednesday.
In economic news, the Euro-zone’s Sentix investor confidence index rose to -18.8 in November, from -22.2 in October.
Meanwhile, in Spain, the number of unemployed people rose by a seasonally adjusted 128,200 people in October, compared to rise of 79,600 people in September. Meanwhile, the Spanish Finance Minister, Luis de Guindos, stated that Spain’s treasury is “well financed” for this year and that the country will not ask for a rescue from European partners for now.
In the Asian session, at GMT0400, the pair is trading at 1.2785, with the EUR trading 0.11% lower from yesterday’s close.
The pair is expected to find support at 1.2754, and a fall through could take it to the next support level of 1.2723. The pair is expected to find its first resistance at 1.2830, and a rise through could take it to the next resistance level of 1.2874.
Trading trends in the pair today are expected to be determined by the release of the services PMI in Germany, Spain, Italy, France and the Euro-zone. Additionally, investors also await the release of the Euro-zone’s producer price index and Germany’s factory orders.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
