EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.84% against the USD and closed at 1.0956.
In economic news, the Euro-zone’s seasonally adjusted trade balance rose more than expected to a level of €22.7 billion in November, climbing to nine-month high as exports increased amid a fall in imports and compared to a surplus of €19.9 billion in the preceding month. Meanwhile, markets expected it to rise to a level of €21.1 billion.
The greenback lost ground, on the back of discouraging US economic data. Data showed that industrial production in the nation declined for the third straight month, after it fell by 0.4% in December, following a drop of 0.9% in the previous month and compared to market expectation of a fall of 0.2%. Additionally, US advance retail sales declined by 0.1% in December, recording its weakest yearly decline since 2009, in line with investor expectation and following a revised gain of 0.4% in the previous month, thus darkening the growth picture of the US economy. Moreover, business inventories in the US registered their biggest drop since 2011, after it eased by 0.2% in November, compared to investor expectations for it to drop by 0.1%.
On the other hand, the nation’s preliminary Reuters/Michigan consumer sentiment index climbed to a level of 93.3 in January while markets expected it to remain steady at previous month’s reading of 92.6.
In the Asian session, at GMT0400, the pair is trading at 1.0894, with the EUR trading 0.56% lower from Friday’s close.
The pair is expected to find support at 1.0841, and a fall through could take it to the next support level of 1.0789. The pair is expected to find its first resistance at 1.0966, and a rise through could take it to the next resistance level of 1.1038.
Amid no macroeconomic releases in Euro-zone today, trading trends in the pair are expected to be determined by global macroeconomic news.
The currency pair is trading below its 20 Hr moving average and is showing convergence with its 50 Hr moving average.
