EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.37% against the USD and closed at 1.3073.
The Euro traded in negative territory after the European Central Bank (ECB) President, Mario Draghi restated that the central bank is ready to cut interest rates if necessary, after keeping them at a record low in its recent policy meeting. Meanwhile, comments from the former German Finance Minister, Oskar Lafontaine regarding the Euro-breakup spurred fears in the region.
On the macro economic front, services PMI data across the Europe came in broadly higher-than-expected in April, though it remained in contraction territory. Also, retail sales in the region dropped 0.1% (MoM) in March, in line with market expectations and compared to a revised 0.2% drop recorded in February. However, the Euro-zone Sentix investor confidence improved to a reading of -15.6 in May, from a reading of -17.3 recorded in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.3080, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.3047, and a fall through could take it to the next support level of 1.3013. The pair is expected to find its first resistance at 1.3120, and a rise through could take it to the next resistance level of 1.3159.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
