EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.15% against the USD and closed at 1.3053, as Spain’s treasury successfully sold debt with the yield on ten-year bond slipping to the lowest level since September 2010 and after German lawmakers approved the Cyproit bailout package.
However, gains were capped amid persistent global growth worries and after Italy’s parliament failed to elect a president in a first round of voting today.
Meanwhile, the greenback came under pressure following the release of weak US economic data Data indicated that initial jobless claims in the world’s largest economy increased to 352K last week, from a revised 348K claims recorded earlier. The Philadelphia Fed manufacturing survey also indicated a deteriorating industrial activity in the region after the relative index dropped to a reading of 1.3 in April, from 2.0 recorded in the previous month. Additionally, the US Conference Board reported an unexpected drop in its index of leading economic indicators.
In the Asian session, at GMT0300, the pair is trading at 1.3066, with the EUR trading 0.10% higher from yesterday’s close.
With a light economic calendar this session, we expect the pair to take cues from the outcome of the G-20 meeting which is set to wind up today.
The pair is expected to find support at 1.3028, and a fall through could take it to the next support level of 1.2991. The pair is expected to find its first resistance at 1.3100, and a rise through could take it to the next resistance level of 1.3135.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
