EURUSD Movement
On Friday, EUR rose 0.67% against the USD and closed at 1.3012.
On the economic front, retail sales in the Euro-zone dropped 0.3% (MoM) in February, compared to a revised 0.9% growth recorded in the previous month. However, German factory orders rose a seasonally adjusted 2.3% (MoM) in February, compared to a revised 1.6% drop recorded earlier.
Data from the US disappointed investors after the number of people employed in nonfarm activities fell by 88K in March, less than the market expectation of 199K job additions and compared to an upwardly revised gain of 268K reported in the previous month. However, unemployment rate fell to 7.6% in March, from 7.7% recorded in February.
Meanwhile, trade deficit in the US dropped to $43.00 billion in February, from $44.45 billion deficit recorded in January.
In the Asian session, at GMT0300, the pair is trading at 1.2989, with the EUR trading 0.18% lower from Friday’s close.
The Portugal’s Prime Minister, Pedro Passos Coelho surprised markets by announcing new budget cuts in public spending in order to meet the tough targets set by international lenders after the nation’s Constitutional Court ruled out a number of austerity provisions in this year’s budget.
The pair is expected to find support at 1.2912, and a fall through could take it to the next support level of 1.2836. The pair is expected to find its first resistance at 1.3053, and a rise through could take it to the next resistance level of 1.3118.
The Euro-zone Sentix investor confidence and industrial production data from Germany is expected to determine trading trends in the pair.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
