EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.46% against the USD and closed at 1.3016, after the European Central Bank President, Mario Draghi, highlighted downside risks to Euro-zone’s growth and stated that the central bank would retain its accommodative stance for the foreseeable future.
On the economic front, German consumer confidence rose to a reading of 6.8 for July, from a reading of 6.5 recorded in June. Separately, French GDP contracted 0.2% (QoQ) in the Q1 2013, in line with the preliminary estimate
Meanwhile, in the US, the gross domestic product expanded at an annual rate of 1.8% in the Q1 2013, much less than the expected 2.4% growth, raising expectations of continued monetary stimulus.
In the Asian session, at GMT0300, the pair is trading at 1.3029, with the EUR trading 0.10% higher from yesterday’s close.
The pair is expected to find support at 1.2981, and a fall through could take it to the next support level of 1.2932. The pair is expected to find its first resistance at 1.3081, and a rise through could take it to the next resistance level of 1.3132.
In the day ahead, investors await a string of Euro-zone economic releases including German unemployment rate, Euro-zone’s M3 money supply and France’s consumer confidence data.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
