EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.15% against the USD and closed at 1.3345, amid speculation that European leaders would step up efforts to aid the region’s banks in a bid to resolve the debt crisis.
German Chancellor Angela Merkel stated that Europe’s rescue fund would only be used as a last resort to save banks and that investors would have to take deeper losses as part of a Greek rescue.
In economic news, in the Euro zone, the Gross Domestic Product (GDP) rose 0.2% in second quarter of 2011, matching initial estimates. The services Purchasing Managers’ Index (PMI) stood at 48.8 in September, compared to 51.1 in the previous month. The retail sales declined 0.3% (M-o-M) in August, compared to 0.2% increase in July.
Additionally, in the German economic news, on a seasonally adjusted basis, the services PMI stood at 49.7 in September, compared to a reading of 51.1 in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.3326, with the EUR trading 0.14% lower from the New York close.
The pair is expected to find support at 1.3274, and a fall through could take it to the next support level of 1.3222. The pair is expected to find its first resistance at 1.3381, and a rise through could take it to the next resistance level of 1.3436.
Investors are eying European Central Bank interest rate decision along with other economic releases to be released in the Euro zone later today.
The currency pair is showing convergence with its 20 Hr moving average and is trading above 50 Hr moving average.
