EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.47% against the USD and closed at 1.3565, as the latest batch of upbeat economic releases from the Euro-zone bolstered the risk-taking appetite among investors.
The ZEW survey on the economic sentiment of Germany rose to a reading of 54.6 in November, more than analysts’ expectations for a rise to 54.0 and compared to previous month’s level of 52.8. Similarly, the ZEW survey of Euro-zone’s economic sentiment edged up to a level of 60.2 in November from a reading of 59.1 registered in the preceding month. Positive sentiment was also fuelled after the European Central Bank (ECB) Executive Board Member, Jorg Asmussen, cautioned that the policy makers must be “very careful” about using negative interest rates to counter low inflation in the economy.
However, the gains in the Euro-zone’s single currency were capped after the ECB Vice President, Vitor Constancio, hinted the possibility for the central bank to opt for asset purchases if needed to shore up Euro-zone economies and keep inflation from falling too low.
Elsewhere, the greenback declined following Chicago Fed President, Charles Evans’s suggestion that the Fed should wait until next year, possibly until March, before beginning to wind down its massive bond-purchase program. Adding to the negative sentiment were comments from the Fed Chairman, Ben Bernanke, who indicated that the central bank is “committed to maintaining highly accommodative policies for as long as they are needed” as the US economy is “still far from where we would like to be.”
In the Asian session, at GMT0400, the pair is trading at 1.3554, with the EUR trading 0.08% lower from yesterday’s close.
The pair is expected to find support at 1.3501, and a fall through could take it to the next support level of 1.3447. The pair is expected to find its first resistance at 1.3594, and a rise through could take it to the next resistance level of 1.3633.
Amid lack of major economic releases from the Euro-zone, traders are expected to keep a close tab on global economic news for further guidance in the pair.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
