EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.33% against the USD and closed at 1.3517. The greenback gave up ground against the Euro, as the latest batch of upbeat economic data from the US and Germany buoyed investors’ appetite for risk taking. However, lingering speculation that the Fed might start tapering its $85 billion monthly asset purchase programme, in its next-month policy meeting, kept the dollar’s losses in check.
In the Euro-zone, the Gfk consumer confidence survey showed that consumer confidence in Germany advanced to a reading of 7.1 for October, defying market expectation to remain unchanged at previous month’s level of 7.0.
Meanwhile in the US, an official report confirmed that durable goods orders in the nation rose 0.1% in August, more than analysts’ call for a rise to 0.0%, from an 8.1% drop seen in the previous month. Another report confirmed that the US new home sales rose to a level of 0.421 million, surpassing market expectation for a rise to 0.420 million and compared to an increase of 0.390 million recorded in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.3523, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.3477, and a fall through could take it to the next support level of 1.3430. The pair is expected to find its first resistance at 1.3554, and a rise through could take it to the next resistance level of 1.3584.
In the absence of key macroeconomic releases from the Europe, traders would focus on US data points for further guidance to the pair. In the US, the weekly report on initial jobless claims, as well as final data on second quarter growth and private sector data on pending home sales would remain in focus.
The currency pair is showing convergence with its 20 Hr moving average and is trading just above its 50 Hr moving average.
