EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 1.83% against the USD, on Friday, and closed at 1.3656, after reports that the European Central Bank (ECB) Executive board member Juergen Stark resigned, citing “personal reasons”. However investors speculated that his resignation came amid disagreements on the bank’s controversial bond-buying program.
Euro zone concerns were intensified after reports that the German government may re-introduce a fund to recapitalize its banks if Greece defaults on the terms of loans it has received, raising worries over the Greece debt default.
In the economic news, the wholesale price index in Germany rose 0.1% M-o-M in August, following a 0.6% fall recorded in the previous month. Additionally, on an annual basis, the consumer price inflation in Germany was revised upwards to 2.4% in August, compared to an initial estimate of 2.3%.
In the Asian session, at 3:00GMT, the EUR is trading at 1.3586, 0.51% lower against USD, from the levels on Friday at 23:00GMT.
The pair has its first short term resistance at 1.3827, followed by the next resistance at 1.4068. The first support is at 1.3455, with the subsequent support at 1.3324.
The currency pair is trading below its 20 Hr and its 50 Hr moving averages.
