EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose marginally against the USD and closed at 1.3779. However the gains in the Euro were capped, as risk appetite among investors declined following European Central Bank’s (ECB) decision to put top Euro-zone banks through rigorous stress tests next year. The ECB President, Mario Draghi, added that, this review of banks would be “an important step forward for Europe and for the future of the Euro area economy.”
In economic news, a report showed that consumer confidence in the Euro-zone economy advanced to a reading of -14.5 in October, less than analysts’ expectation for a rise to -14.4 from a level of -14.9 recorded in the previous month.
Meanwhile, in the US, the nation’s house pricing index rose 0.3% (MoM) in August, less than market expectation for a rise of 0.8%.
In the Asian session, at GMT0300, the pair is trading at 1.3791, with the EUR trading 0.09% higher from yesterday’s close.
The pair is expected to find support at 1.3757, and a fall through could take it to the next support level of 1.3722. The pair is expected to find its first resistance at 1.3810, and a rise through could take it to the next resistance level of 1.3828.
Later today, manufacturing and services activity data across Europe for October will be under the scanner for further indication on the strength of the economic recovery in the region in the initial phase of the fourth quarter.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
