EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.16% against the USD and closed at 1.3357, as a better-than-expected ZEW economic sentiment data in the Euro-zone and Germany boosted investors’ sentiment amid uncertainty over Fed stimulus programme.
In the Euro-zone, data showed that ZEW survey of the region’s economic sentiment surged to a level of 58.6 during September, surpassing market expectation for a rise to 47.2 and following a reading of 44.0 registered in the previous month. Meanwhile, ZEW survey of Germany’s economic sentiment and current situation came in at a reading of 49.6 and 30.6, respectively, in the month of September, more than analysts’ call for a rise to 46.0 and 20.8. A separate report showed that, on a non-seasonally adjusted basis, Euro-zone’s trade surplus rose to a level of €18.2 billion in the month of July, compared to a surplus of €16.5 billion recorded in the earlier month.
Elsewhere, in the US, a report revealed that the nation’s consumer price index stood at 1.5% (YoY) in August, below market consensus for a decline to 1.6% from 2.0% recorded in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.3354, with the EUR trading tad lower from yesterday’s close.
The pair is expected to find support at 1.3330, and a fall through could take it to the next support level of 1.3306. The pair is expected to find its first resistance at 1.3374, and a rise through could take it to the next resistance level of 1.3394.
Investors await Fed’s decision on its $85 billion asset purchase programme, later today, for further direction in the pair. Traders are also expected to keep an eye on Euro-zone’s construction output data, scheduled to release later during the day.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
