EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.83% against the USD and closed at 1.3282. The US Dollar registered gains after the Federal Reserve Chairman, Ben Bernanke indicated that the US central bank’s policy setting committee could reduce its $85 billion bond-buying program this year if economic forecasts come in as expected. Meanwhile, the Federal Open Market Committee stated that the Federal Reserve (Fed) left the interest rates unchanged at a record low range of zero to 0.25%, and continues buying $85.0 billion in debt each month.
On the economic front, Euro-zone’s construction output dropped at a slower pace in April, while Spain registered a trade deficit in May. Separately, in the US, the Mortgage Bankers Association (MBA) reported that, on a seasonally adjusted basis, mortgage applications volume slipped by 3.3% in the week ending 14 June 2013.
In the Asian session, at GMT0300, the pair is trading at 1.3256, with the EUR trading 0.20% lower from yesterday’s close.
The pair is expected to find support at 1.3199, and a fall through could take it to the next support level of 1.3143. The pair is expected to find its first resistance at 1.3365, and a rise through could take it to the next resistance level of 1.3475.
Later today investors eye the purchasing managers index data scheduled to be released in Germany, France and the Euro-zone. Meanwhile, the US is scheduled to release a string of releases pertaining to the employment and housing sector. Its preliminary manufacturing PMI is also due later today, wherein investors expect to see a marginal rise in June.
The currency pair is trading way below its 20 Hr and 50 Hr moving averages.
