EURUSD Movement
On Friday, EUR declined 0.14% against the USD and closed at 1.3224. The dollar gained strength as the US employment growth in May was higher than market expectations, which renewed speculation that the US Federal Reserve could taper the pace of its monetary stimulus sooner than expected.
On the US economic front, nonfarm payrolls rose by 175K jobs in May, higher than the market expectations for a rise of 165K jobs and compared to a downwardly revised increase of 149K reported in the previous month. Meanwhile, US consumer credit rose less than expected in April.
Separately, in the Euro-zone, trade surplus in Germany widened to €17.7 billion in April, while current account surplus narrowed to €17.6 billion in April. Moreover, industrial production advanced 1.8% in April. Separately, trade deficit in France widened to €4.52 billion in April from an upwardly revised deficit of €4.50 billion reported in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.3202, with the EUR trading 0.17% lower from Friday’s close.
The pair is expected to find support at 1.3167, and a fall through could take it to the next support level of 1.3132. The pair is expected to find its first resistance at 1.3261, and a rise through could take it to the next resistance level of 1.3320.
Trading trends in the pair today are expected to be determined by the release of the Sentix investor confidence data in the Euro-zone.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
