For the 24 hours to 23:00 GMT, EUR declined 0.09% against the USD and closed at 1.3545, amid a lack of major economic release in the Euro-zone. Adding to the Euro’s fall were comments from Benoit Coeure, Executive Board member of the European Central Bank (ECB), who in a conference at Brussels, hinted the possibility for the ECB to maintain its accommodative monetary policies for an extended period of time, in order to nurture a “weak and uneven” economic recovery in the region. Separately, the ECB President, Mario Draghi, in an interview with the Swiss daily Neue Zuricher Zeitung, stated that the risk of deflation to the Euro-zone economy remains limited but at the same time cautioned that the overall risk of setbacks to the region’s fragile economic recovery were great, adding that the ECB has “very many instruments” to ensure price stability in the region.
In the Asian session, at GMT0400, the pair is trading at 1.3547, with the EUR trading tad higher from yesterday’s close.
The pair is expected to find support at 1.3523, and a fall through could take it to the next support level of 1.3500. The pair is expected to find its first resistance at 1.3577, and a rise through could take it to the next resistance level of 1.3608.
Later during the day, the markets would be flooded by a raft of European flash PMI data releases, coupled with the release of the European Commission’s consumer confidence data for the Euro-zone economy.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
