EURUSD Movement
For the 24 hours to 23:00 GMT, EUR marginally declined against the USD and closed at 1.3523, as traders refrained from taking major bets ahead of European Central Bank (ECB) policy decision.
In the Euro-zone, data showed that the region’s Markit manufacturing PMI declined to a reading of 51.1 in September, in-line with market expectations and compared to a level of 51.4 witnessed in the preceding month. Another official data revealed that unemployment rate in the region stood at 12.0% in August, defying analysts’ call for a rise to 12.1% and compared to a similar reading recorded in the month earlier. However, on a seasonally adjusted basis, unemployment rate in Germany rose 6.9% during September, more than market expectation for the unemployment rate to remain unchanged at previous month’s level of 6.8%.
Elsewhere, in the US, the government faced the first shut-down in nearly 18 years, as the Republicans and the Democrats failed to agree on President Barack Obama’s healthcare bill. Meanwhile, on the economic front, a report showed that the US ISM manufacturing PMI rose to a level of 56.2 during September, defying analysts’ expectation for a decline to 55.0, from a reading of 55.7 seen in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.3519, with the EUR trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.3487, and a fall through could take it to the next support level of 1.3455. The pair is expected to find its first resistance at 1.3570, and a rise through could take it to the next resistance level of 1.3621.
Trading trends in the Euro is expected to be determined by the European Central Bank’s (ECB) decision on the nation’s benchmark interest rate, which the market expects the central bank to keep it unchanged at 0.5%.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
