EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.20% against the USD and closed at 1.3266. Earlier, the common currency rose as improvement in German and the Euro-zone’s economic sentiment data sparked a decent reaction among Euro traders.
According to the data released by the Centre for European Economic Research (ZEW), economic sentiment index in the Euro-zone climbed to a reading of 44.0 in August, surpassing market expectation. In Germany, current situation index advanced to a level of 18.3 in August, from a level of 10.6 registered in July and more than the market estimates. Similarly, the economic sentiment index climbed to a level of 42.0 in August, compared to a level of 36.3 reported in July.
Additionally, industrial production in the Euro-zone rose 0.7% (MoM) in June, from a 0.2% drop in the previous month. In Germany, consumer price index advanced 1.9% in July, in line with the preliminary estimate, while the wholesale price index fell 0.3% (MoM) in July.
Meanwhile, retail sales in the US rose for the fourth consecutive month in July, although the sales growth was slightly weaker than expected.
In the Asian session, at GMT0300, the pair is trading at 1.3264, with the EUR trading tad lower from yesterday’s close.
The pair is expected to find support at 1.3226, and a fall through could take it to the next support level of 1.3187. The pair is expected to find its first resistance at 1.3310, and a rise through could take it to the next resistance level of 1.3355.
Important economic events to watch today include second quarter gross domestic product data from few European countries, including Germany and France.
The currency pair is showing convergence with its 20 Hr moving average and is trading below 50 Hr moving average.
