EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.24% against the USD and closed at 1.3117.
Yesterday, the Federal Reserve Chairman, Ben Bernanke, stated that tapering its current asset purchases program depends upon economic and financial developments of the US and it is by no means on a preset course. He reiterated that the central bank still expects to start scaling back its massive bond purchase program later this year, but if the labour market becomes less favourable and financial conditions tighten, then the current pace of purchases could be maintained for longer time.
Additionally, the Federal Reserve’s Beige Book business survey reports showed that the US economy is continuing to grow at a modest to moderate pace.
In economic news, construction output in the Euro-zone declined 0.3% (MoM) in May, from a revised 1.0% rise recorded in April.
In the Asian session, at GMT0300, the pair is trading at 1.3096, with the EUR trading 0.16% lower from yesterday’s close.
The pair is expected to find support at 1.3059, and a fall through could take it to the next support level of 1.3023. The pair is expected to find its first resistance at 1.3155, and a rise through could take it to the next resistance level of 1.3215.
Economic reports scheduled today include current account data from the Euro-zone. Market expects the current account surplus to widen in May.
The currency pair is trading just below its 20 Hr and 50 Hr moving averages.
