EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.20% against the USD and closed at 1.3764, after the European Central Bank (ECB) President, Mario Draghi, eased concerns over threats of low inflation in the Euro-zone economy, by stating that it is essential for the ECB to keep public trust by sticking to its mandate of delivering price stability. He additionally asked national governments to deliver economic reforms and complete a banking union, remarking that the ECB had gained time for action, by providing price stability over the last 15 years.
In economic news, an official report from Italy showed that the nation’s Gross Domestic Product (GDP) in the third quarter was at the previous month’s level and compared to analysts’ expectations for a 0.1% (QoQ) fall. Another report revealed that, on a seasonally adjusted basis, industrial output in Italy rose 0.5% (MoM) in October, more than market expectations for a rise of 0.2%. Separately, French industrial output fell unexpectedly by 0.3% (MoM) in October, following a similar rate of fall witnessed in the previous month, against market expectations of a 0.1% rise.
In the Asian session, at GMT0400, the pair is trading at 1.3761, with the EUR trading tad lower from yesterday’s close.
The pair is expected to find support at 1.3735, and a fall through could take it to the next support level of 1.3710. The pair is expected to find its first resistance at 1.3791, and a rise through could take it to the next resistance level of 1.3822.
Traders keenly await Germany’s consumer inflation data, slated for release later today.
The currency pair is showing convergence with its 20 Hr moving average and is trading just above its 50 Hr moving average.
