EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 2.66% against the USD and closed at 1.3117, as the greenback came under pressure after the Federal Reserve Chairman, Ben Bernanke stated that the US central bank would continue to pursue an accommodative monetary policy as inflation remained low. The minutes of the Federal Reserve’s (Fed) last policy meeting held on 18th & 19th June indicated that nearly half of the members were of the opinion that the central bank should wind down its massive stimulus measures by the end of this year.
However, many members still believed that further improvement in the economy is warranted before the Fed could begin altering its pace of bond purchases. Meanwhile, the Euro-zone reported a mix set of economic data wherein the annual 1.8% rise in German consumer price index matched the preliminary estimate in June. In France, the current account deficit widened in May. Moreover, the industrial production recorded a rise in May, while manufacturing production dropped in May.
In the Asian session, at GMT0300, the pair is trading at 1.3134, with the EUR trading 0.13% higher from yesterday’s close.
The pair is expected to find support at 1.2869, and a fall through could take it to the next support level of 1.2604. The pair is expected to find its first resistance at 1.3303, and a rise through could take it to the next resistance level of 1.3472.
Investors keenly eye the US initial jobless claims and continuing jobless claims data due later today for further cues on the jobs market.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
