EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.35% against the USD and closed at 1.1057.
In economic news, Germany’s IFO expectations index unexpectedly advanced to a level of 103.8 in October, from a reading of 103.3 in the previous month. Investors had expected it to drop to a level of 102.4. Further, the nation’s business climate index eased to a level of 108.2 in the same month, beating market expectations for a reading of 107.8, and compared to a level of 108.5 in September. On the other hand, Germany’s IFO current assessment index dropped to a reading of 112.6 in October, from a level of 114.0 in the previous month. Markets were anticipating it to decline to 113.5.
The greenback lost ground after new home sales in the US fell to a near one-year low in September after witnessing two straight months of gains. Data showed that new home sales dropped 11.5%, to a level of 468.0K, on MoM basis, compared to a downwardly revised reading of 529.0K in the previous month. Market anticipation was for it to advance to a level of 550.0K.
Further, the US Dallas Fed manufacturing business index declined unexpectedly to a level of 12.7 in October, compared to a reading of -9.5 in the prior month. Investors had expected it to rise to a level of -6.5.
In the Asian session, at GMT0400, the pair is trading at 1.1067, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.1024, and a fall through could take it to the next support level of 1.0981. The pair is expected to find its first resistance at 1.1090, and a rise through could take it to the next resistance level of 1.1113.
Going ahead, investors will look forward to the US durable goods order, Markit services PMI and the consumer confidence data, scheduled to be released later today.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
