EURUSD Movement
For the 24 hours to 23:00 GMT, EUR marginally declined against the USD and closed at 1.3670, as traders refrained from taking riskier bets amid a lack of major economic releases from the Euro-zone.
In economic news, Sabine Lautenschlaeger, the European Central Bank (ECB) candidate set to replace previous member, Joerg Asmussen, in her testimony to the EU Committee, warned of the possible risks of low-interest rates to the Euro-zone economy, by suggesting that “some of the measures should be exited as soon as possible because of their side-effects. Low interest rates, for example, stimulate economic activity, but are not without risks in the long run.”
Separately, data showed that Italian industrial output rose 1.4% (YoY) in November, surpassing analysts’ expectations for the industrial output to remain flat, from a 0.4% drop registered in the previous month. Another report revealed that consumer inflation in Greece registered a reading of negative 1.7% (YoY) in December, from previous month’s negative 2.9%.
In the Asian session, at GMT0400, the pair is trading at 1.3660, with the EUR trading 0.07% lower from yesterday’s close.
The pair is expected to find support at 1.3636, and a fall through could take it to the next support level of 1.3612. The pair is expected to find its first resistance at 1.3684, and a rise through could take it to the next resistance level of 1.3708.
Traders are expected to keep a close watch on Euro-zone’s industrial production data and inflation data from Germany, France and Italy, due later today, for further guidance in the Euro.
The currency pair is showing convergence with its 20 Hr moving average and is trading just above its 50 Hr moving average.
