EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.13% against the USD and closed at 1.1143, after the final reading of the Euro-zone’s Markit services PMI unexpectedly dropped to a level of 52.8 in August, compared to market expectations for it to remain steady at the preliminary reading of 53.1. In the previous month, the services PMI had registered a reading of 52.9. Meanwhile in Germany, final services PMI surprisingly fell to a 37-month low level of 51.7 in August, from a flash reading of 53.3 and compared to the previous month’s level of 54.4.
In other economic news, the Euro-zone’s Sentix investor confidence index advanced above expectations to a three-month high level of 5.6 in September, rising for the second consecutive month and after recording a reading of 4.2 in the previous month. Also, the region’s retail sales rose more-than-expected by 1.1% MoM in July, its largest monthly increase for a year, following a revised 0.1% fall in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.1154, with the EUR trading 0.10% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1133, and a fall through could take it to the next support level of 1.1113. The pair is expected to find its first resistance at 1.1178, and a rise through could take it to the next resistance level of 1.1203.
Going ahead, market participants look forward to the Euro-zone’s final second quarter GDP data, scheduled to release in a few hours. Moreover, the US ISM non-manufacturing PMI and the IBD/TIPP economic optimism index, due later today, will attract market attention.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
