EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.68% against the USD and closed at 1.1331.
In economic news, the Euro-zone’s flash consumer confidence index unexpectedly fell to a level of -7.3 in June, its first drop in three months, compared to investor expectations of it to remain steady at -7.0.
In the US, on the second day of her testimony, the US Federal Reserve (Fed) Chairwoman, Janet Yellen, sounded more optimistic than she did over the recent past. She indicated that the present weakness in the US job market is “transitory” and that job growth will rebound in the coming months. She further stated that there has been a sharp increase in consumer spending and the Fed remains hopeful that the nation will witness a pickup in growth.
In other economic news, US existing home sales advanced 1.8% MoM in May to a level of 5.53 million, the highest level in over nine years, compared to market expectations of 5.55 million. Existing home sales had registered a revised level of 5.43 million in the prior month. On the other hand, the nation’s house price index climbed 0.2% MoM in April, compared to a revised rise of 0.8% in the previous month. Market expectation was for the housing price index to rise 0.6%. A separate report by the US Mortgage Bankers Association indicated that mortgage applications rebounded 2.9% in the week ended 17 June 2016, following a 2.4% drop in the previous week.
In the Asian session, at GMT0300, the pair is trading at 1.1338, with the EUR trading 0.06% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1272, and a fall through could take it to the next support level of 1.1206. The pair is expected to find its first resistance at 1.1376, and a rise through could take it to the next resistance level of 1.1414.
Moving ahead, investors will look forward to the Markit manufacturing and services PMI data for June, across the Euro-zone, scheduled to release in a few hours. Moreover, the weekly jobless claims as well as Markit manufacturing PMI from the US, due later today, will also garner market attention.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
