EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.08% against the USD and closed at 1.1670.
Macroeconomic data showed that the Euro-zone’s seasonally adjusted construction output rose 0.3% on a monthly basis, in July. In the preceding month, construction output had recorded a revised rise of 0.7%.
In the US, data indicated that housing starts climbed to a 3-month high level of 9.2%, on a monthly basis, to an annual rate of 1282.0K in August, and compared to a revised level of 1174.0K in the prior month, while market participants had anticipated the housing starts to climb to a level of 1238.0K. Moreover, US MBA mortgage applications rebounded 1.6% on a weekly basis in the week ended 14 September 2018, after registering a drop of 1.8% in the previous week.
On the other hand, the nation’s building permits surprisingly eased 5.7%, on a monthly basis, to an annual rate of 1229.0K in August, marking its largest fall since February 2017 and defying market expectations for a gain of 1310.0K. In the prior month, building permits had registered a revised level of 1303.0K.
In the Asian session, at GMT0300, the pair is trading at 1.1684, with the EUR trading 0.12% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1651, and a fall through could take it to the next support level of 1.1618. The pair is expected to find its first resistance at 1.1716, and a rise through could take it to the next resistance level of 1.1748.
Going ahead, investors will await the Euro-zone’s consumer confidence data for September, set to release later in the day. Also, the US existing home sales for August and Philadelphia Fed business outlook for September along with initial jobless claims will garner significant amount of trader’s attention.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
