EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 1.25% against the USD and closed at 1.3524. The US Dollar slid against the Euro after the Fed refrained from altering the size of its $85 billion monthly asset-purchase programme, saying that the nation economic conditions has still not shown enough signs of improvement to curb the stimulus scheme. However, the Fed Chief, Ben Bernanke, later highlighted the possibility for the tapering to start later this year, adding that the decision will be “data-dependent”.
Separately, in the US, an official report revealed that, on a monthly basis, building permits in the nation declined 3.8% (MoM) to a level of 0.918 million in August, more than analysts’ call for a fall to 0.950 million from a level of 0.954 million registered in the previous month. Another report showed that, on a monthly basis, the US housing starts rose to a reading of 0.891 million, less than market expectation for a rise to 0.917 million and following a level of 0.883 million recorded in the earlier month.
Meanwhile, in the Euro-zone, data showed that, on a seasonally adjusted basis, construction output in the region rose 0.3% (MoM) in July, less than previous month’s rise of 0.7%.
In the Asian session, at GMT0300, the pair is trading at 1.3532, with the EUR trading 0.06% higher from yesterday’s close.
The pair is expected to find support at 1.3399, and a fall through could take it to the next support level of 1.3266. The pair is expected to find its first resistance at 1.3604, and a rise through could take it to the next resistance level of 1.3676.
Amid lack of major economic releases in the Euro-zone, investors are expected to keep an eye on the release of US employment, home sales and Philadelphia Fed manufacturing data, due later today, for further guidance in the pair.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
