EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.69% against the USD and closed at 1.3148. The greenback stayed on back foot, ahead of Federal Reserve Chairman, Ben Bernanke’s testimony later today, in which markets anticipate that he would dampen investor expectations of a reduction in stimulus in near future.
Macro economic data released yesterday showed that the Euro-zone’s final consumer price index (CPI) rose 1.6% in June, in line with the preliminary estimate and compared to a 1.4% rise in May. Trade surplus in the Euro-zone widened €15.2 billion in May, compared to a surplus of €14.1 billion in April. The ZEW economic sentiment index in the Euro-zone rose to a reading of 32.8 in July. However in Germany, the ZEW economic sentiment index dropped to a reading of 36.3 in July, while the current situation index edged up to a reading 10.6 in July.
Meanwhile in the US, annual consumer prices rose more-than-expected in June, followed by a better-than-expected rise in monthly industrial production in June.
In the Asian session, at GMT0300, the pair is trading at 1.3141, with the EUR trading slightly lower from yesterday’s close.
The pair is expected to find support at 1.3070, and a fall through could take it to the next support level of 1.2998. The pair is expected to find its first resistance at 1.3194, and a rise through could take it to the next resistance level of 1.3246.
Trading trends in the pair today are expected to be determined by release of construction output data from the Euro-zone later today.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
