EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.13% against the USD and closed at 1.3173, as a better-than-expected US manufacturing PMI data boosted the demand for the greenback. Data showed that the US ISM Manufacturing PMI advanced to a reading of 55.7 in August, more than the market expectation for a reading of 54.0 and compared to a level of 55.4 recorded in the previous month.
Meanwhile, in the Euro-zone, an official report showed that producer price index in the region edged up 0.2% (YoY) during July, surpassing analysts’ estimate for a rise to 0.1% and compared to a 0.3% growth seen in the previous month. The common currency also moved lower against the US Dollar, as the Spanish jobs data released yesterday surprised investors on the downside.
In the Asian session, at GMT0300, the pair is trading at 1.3167, with the EUR trading tad lower from yesterday’s close.
The pair is expected to find support at 1.3137, and a fall through could take it to the next support level of 1.3108. The pair is expected to find its first resistance at 1.3197, and a rise through could take it to the next resistance level of 1.3228.
Trading trends in the pair today are expected to be determined by Euro-zone’s GDP data, which the market expects to show an improvement in the second quarter. Investors also await the release of Euro-zone’s retail sales and service PMI data, due later today. Also in focus would be services PMI data from Germany, France, Italy and Spain.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
