EURUSD Movement
On Friday, EUR rose marginally against the USD and closed at 1.3807. However, gains in the Euro were capped after a report showed that the IFO – current assessment of the German economy edged down to a reading of 111.3 in October, defying market expectation for a rise to 111.6 and compared to a level of 111.4 recorded in the earlier month. Similarly, the IFO – expectation for Germany unexpectedly declined to a level of 103.6 in October from a reading of 104.2 registered in the preceding month.
Meanwhile, in the US, an official report showed that durable goods orders in the nation surged 3.7% in September, surpassing analysts’ call for a 2.0% rise and compared to a 0.1% increase witnessed in the previous month. However, the Reuters/Michigan consumer sentiment index declined more-than-expected to a reading of 73.2 in October from a figure of 77.5, registered in the preceding month.
In the Asian session, at GMT0400, the pair is trading at 1.3808, with the EUR trading tad higher from Friday’s close.
The pair is expected to find support at 1.3777, and a fall through could take it to the next support level of 1.3746. The pair is expected to find its first resistance at 1.3836, and a rise through could take it to the next resistance level of 1.3864.
Later today, the German retail sales data for September is set to release. Market expects retail sales to rise 0.1% (MoM) in September, following previous month’s growth of 0.5%.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
