EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.24% against the USD and closed at 1.3394, amid upbeat Euro-zone and German sentiment figures.
The European Economic Research (ZEW) indicated that the economic sentiment index in Germany rose to a reading of 38.50 in June, higher than the expected rise to 38.10. Similarly, Euro-zone’s economic sentiment index rose to a reading of 30.60 in June, higher than the expected reading of 29.40.
The President of the European Central Bank, Mario Draghi indicated that central bank could use its numerous monetary policy measures like standard interest rate policy and non-standard measures, if needed to further boost the Euro area’s economy.
On the US economic front, housing starts rose to a seasonally adjusted annual rate of 914K units in May, much lower than the anticipated annual rate of 950K units. Similarly, building permits in the US fell more than the market expectations in May. Separately, the consumer price index (CPI) in the US rose 0.1% (MoM) in May, whereas market had forecast the CPI to rise 0.2% in May. Annual CPI rose increased 1.4% in May.
In the Asian session, at GMT0300, the pair is trading at 1.3391, with the EUR trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.3339, and a fall through could take it to the next support level of 1.3286. The pair is expected to find its first resistance at 1.3430, and a rise through could take it to the next resistance level of 1.3468.
Investors have their eyes glued to the outcome of the much awaited Federal Open Market Committee’s two-day meeting, and a press conference to be held by Federal Reserve Chairman, Ben Bernanke shortly afterwards. Investors widely expect the Fed to maintain the federal funds rate between 0% and 0.25% and continue to buy $85 billion in Treasuries and mortgage-backed securities a month.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
