EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.68% against the USD and closed at 1.1556.
On the data front, the Euro-zone’s ZEW economic sentiment index dropped more-than-expected to a level of 35.6 in July, compared to a level of 37.7 in the previous month, while markets were expecting for a fall to a level of 37.2.
Separately, mood among German investors eased more-than-anticipated to a level of 17.5 in July, compared to market consensus for a drop to a level of 18.0. In the previous month, the index had recorded a level of 18.6.
The greenback declined against a basket of major currencies, after the collapse of a Republican healthcare bill in the Senate added to worries that the US President, Donald Trump may be losing control of his legislative agenda.
On the macro front, the US NAHB housing market index unexpectedly eased to a level of 64.0 in July, hitting its lowest in 8 months, dragged down by concerns over rising costs for materials, particularly lumber. The index had registered a revised reading of 66.0 in the prior month, while market participants had expected it to climb to a level of 67.0. Moreover, the nation’s export price index surprisingly fell 0.2% on a monthly basis in June, compared to a revised drop of 0.5% in the prior month. Also, the nation’s import price index declined 0.2% MoM in June, after recording a revised drop of 0.1% in the prior month.
In the Asian session, at GMT0300, the pair is trading at 1.1539, with the EUR trading 0.15% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1506, and a fall through could take it to the next support level of 1.1472. The pair is expected to find its first resistance at 1.1578, and a rise through could take it to the next resistance level of 1.1616.
Moving ahead, market participants will focus on the Euro-zone’s construction output data for May, slated to release in a few hours. Additionally, in the US, housing starts and building permits data, both for June, scheduled to release later in the day, would pique investor attention.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
