EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined marginally against the USD and closed at 1.3058.
Yesterday, Fitch Ratings downgraded the European Financial Stability Facility (EFSF) rating to ‘AA+’ from ‘AAA’, with Stable Outlook.
On the other hand, in Portugal, the three main political parties have set a 21 July 2013 deadline to agree to a “national salvation pact” which aims to ensure that reforms critical to the nation’s bailout are not derailed by the recent political turmoil in the country.
Meanwhile, economic data out yesterday showed that monthly retail sales in the US rose less than market expectations in June. Additionally, the New York Empire State manufacturing index reached a five month high in July, thus indicating that conditions for New York manufacturers have improved.
In the Asian session, at GMT0300, the pair is trading at 1.3070, with the EUR trading modestly higher from yesterday’s close.
The pair is expected to find support at 1.3015, and a fall through could take it to the next support level of 1.2961. The pair is expected to find its first resistance at 1.3102, and a rise through could take it to the next resistance level of 1.3135.
European economic calendar today comprises of important economic releases such as consumer prices, trade balance and economic situation index from the Euro-zone. Additionally, economic sentiment and current situation index from Germany is also scheduled today.
The currency pair is showing convergence with its 20 Hr and its 50 Hr moving averages.
