EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined marginally against the USD and closed at 1.4360, amid speculation that the Federal Reserve Chairman, Ben S. Bernanke would signal additional steps to bolster the US economy.
The German Finance Ministry in its monthly report indicated that the country’s budget would balance by 2014. The Finance Ministry expects the German budget deficit for the current year to fall to 1.5% of the country’s Gross Domestic Product, a smaller deficit than previously expected.
Additionally, the German Finance Minister, Wolfgang Schaeuble, yesterday, stated that there are no signs of a recession in Germany. He further added that the German economy is set to grow 3% this year.
In the Asian session, at 3:00GMT, the EURUSD is trading at 1.4380, 0.14% higher from the levels yesterday at 23:00GMT.
The pair has its first short term resistance at 1.4429, followed by the next resistance at 1.4477. The first support is at 1.4338, with the subsequent support at 1.4295.
With a series of Euro zone economic releases today, including Purchasing Manager Index (PMI) and economic sentiment, trading in the pair is expected to be influenced by the resulting cues from these releases.
The currency pair is showing convergence with its 20 Hr and its 50 Hr moving averages.
