EURUSD Movement
On Friday, EUR rose 0.48% against the USD and closed at 1.3182, as German industrial orders fell unexpectedly in July and as a soft US nonfarm payrolls data fuelled speculation that the Fed might delay plans to taper its asset purchase porgramme to support growth in its jobs market.
In the US, data showed that the economy added 169,000 jobs during August, failing to meet market expectation for an addition of 180,000 jobs and compared to 104,000 jobs added in the previous month.
Meanwhile, in the Euro-zone, an official data showed that, on a seasonally adjusted basis, the industrial production in Germany declined 1.7% (MoM) in July, lower than analysts’ consensus for a 0.5% fall and following a 2.0% rise recorded in the previous month. Similarly, on a seasonally adjusted basis, the trade balance in Germany posted a surplus of €14.5 billion in July, less than the market expectation for a surplus of €16.1 billion and compared to a surplus of €15.8 billion registered in the earlier month.
In the Asian session, at GMT0300, the pair is trading at 1.3172, with the EUR trading tad lower from Friday’s close.
The pair is expected to find support at 1.3121, and a fall through could take it to the next support level of 1.3070. The pair is expected to find its first resistance at 1.3206, and a rise through could take it to the next resistance level of 1.3240.
Investors await the release of Euro-zone’s Sentix investor confidence data, which the market expects to show an improvement in the month of August.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
