EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.33% against the USD and closed at 1.3053, as weak US economic data dented investor sentiment. In the US, the Empire State manufacturing index dropped to a reading of 3.05 in April, while the NAHB/Wells Fargo housing market index slipped to a reading of 42.0 in April, its lowest level in six months.
In the Euro-zone, trade surplus the widened to a seasonally adjusted €12.0 billion in February, from a revised €8.7 billion surplus in January.
In the Asian session, at GMT0300, the pair is trading at 1.3064, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.3021, and a fall through could take it to the next support level of 1.2979. The pair is expected to find its first resistance at 1.3107, and a rise through could take it to the next resistance level of 1.3151.
Later in the day, Euro-zone’s consumer price index and the ZEW Survey – economic sentiment are forecast to record a rise in March and April, respectively. However, the ECB President, Mario Draghi’s speech later today would be deciphered about his plans to address the Euro-zone debt crisis problems and is expected to prove decisive for the direction of the Euro against most of its peers. The pair is also expected to take further cues from the outcome of the CPI, housing and industrial production data set to be release in the US later today.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
