EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.20% against the USD and closed at 1.3646, as traders cheered an upbeat Euro-zone Sentix investor confidence data, which revealed a reading of 13.3 in February, the highest level in 34-months, compared to a figure of 11.9 registered in the preceding month. However, the gains in the Euro were capped after the Euro-zone’s periphery nations, France and Italy reported lacklustre industrial output data for December.
Separately, the EU economics Chief, Olli Rehn, opined that the European Central Bank (ECB) still has a “big bazooka” with plenty of ammunition to preserve the Euro, despite a German constitutional court ruling on Friday indicating that the central bank’s bond-buying plan was probably illegal. He additionally urged the ECB to implement measures for ensuring that the abnormally low inflation in the region rises towards its 2% target.
Meanwhile, the US Dollar remained in the red territory as traders exercised caution ahead of the Fed Chief, Janet Yellen’s first testimony, due later today. The greenback also faced some resistance, following the Boston Fed President, Eric Rosengren’s speech who opined that the central bank should be slow in scaling back its accommodative monetary policies and also about changing its strategy. He further added that the labour conditions in the nation are still far from where they should be in order to justify higher short-term interest rates.
In the Asian session, at GMT0400, the pair is trading at 1.3670, with the EUR trading 0.18% higher from yesterday’s close.
The pair is expected to find support at 1.3633, and a fall through could take it to the next support level of 1.3596. The pair is expected to find its first resistance at 1.3693, and a rise through could take it to the next resistance level of 1.3716.
Amid a lack of major economic releases from the Euro-zone during the later course of the day, market participants would eye global economic news for further guidance in the pair. Meanwhile, the new Fed Chief, Janet Yellen’s first testimony to the House later today would be closely followed in order to get further insights about the Federal Reserve’s next policy move.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
