EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.18% against the USD and closed at 1.3474. The greenback rose as concerns over the US budget talks lured investors to take refuge under the safe-haven, dollar.
The US Dollar also received some support from domestic housing data, which revealed that the US housing price index advanced 1.0% (MoM) in July, more than analysts’ expectation for a 0.9% rise and compared to a 0.7% increase registered in the preceding month. However, gains were capped after data showed that consumer confidence in the US declined to a level of 79.7 during September, more than analysts’ call for a drop to 79.8 and following a reading of 81.8 seen in the previous month.
Meanwhile, in the Euro-zone, a report showed that the IFO business climate in Germany rose to a level of 107.7 in September, less than market expectation for a rise to 108.2 level and compared to a reading of 107.6 registered in the previous month. The IFO current assessment of Germany also declined to a reading of 111.4 in September, defying analysts’ consensus for a rise to 112.5 from a level of 112.0 recorded in the earlier month. However, the IFO expectations for the German economy surged to a level of 104.2 during September, surpassing market estimate for a rise to 104.0 and following a figure of 103.3 seen in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.3467, with the EUR trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.3445, and a fall through could take it to the next support level of 1.3424. The pair is expected to find its first resistance at 1.3504, and a rise through could take it to the next resistance level of 1.3542.
Following a mixed batch of IFO data from Germany, inventors are now eyeing the release of the German Gfk consumer confidence survey report, which the market expects to register an improvement in the month of October.
The currency pair is showing convergence with its 20 Hr moving average and is trading just below its 50 Hr moving average.
