EURUSD Movement
For the 24 hours to 23:00 GMT, EUR traded flat against the USD and closed at 1.3265.
A return to growth in the Euro-zone was enough to buoy traders in the European session yesterday. The bloc’s gross domestic product (GDP) data revealed that the single-currency region exited a recession in the second quarter by expanding 0.3%, ahead of the 0.2% forecast. Also GDP data from the Euro area’s two-largest nations, Germany and France, came in ahead of market estimates.
Yesterday, St. Louis Fed President, James Bullard indicated that the US Federal Reserve risks pushing inflation even lower if it tapers bond purchases too aggressively and suggested that the central bank needs to gather more evidence that the economy is improving before deciding to taper its bond buying program.
In the Asian session, at GMT0300, the pair is trading at 1.3291, with the EUR trading 0.20% higher 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 1.3214. The pair is expected to find its first resistance at 1.3315, and a rise through could take it to the next resistance level of 1.3338.
With no key economic releases from the Europe in the day ahead, the movement in the single currency is expected to ride on the date release of consumer inflation, jobless claims, industrial production and manufacturing data in the US.
The currency pair is above its 20 Hr and 50 Hr moving averages.
