EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.38% against the USD and closed at 1.3308, after economic reports showed that German factory orders grew more than economists forecast in June, indicating that the Euro-zone largest economy is picking up.
Adding to the positive tone, the International Monetary Fund stated that Germany would see stronger economic growth in 2014, as the country benefits from low unemployment, solid public and private finances, and a gradual recovery in the rest of Europe.
Other economic reports showed that Italian economy contracted less than expected in the second quarter of 2013. Moreover, nation’s industrial output increased 0.3% in June, following 0.1% rise reported in May.
Separately, the European Central Bank (ECB) Executive Board Member, Peter Praet, stated that the central bank stands ready to reduce interest rates further if inflation outlook warrants.
In the Asian session, at GMT0300, the pair is trading at 1.3297, with the EUR trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.3253, and a fall through could take it to the next support level of 1.3210. The pair is expected to find its first resistance at 1.3332, and a rise through could take it to the next resistance level of 1.3368.
Hogging the spotlight ahead would be German industrial production, along with trade balance data from France.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
