EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.19% against the USD and closed at 1.3392, after Standard & Poor’s warned that it may downgrade the credit ratings of 15 Euro-zone nations’ if EU leaders fail to reach an agreement on how to solve the region’s debt crisis in a summit later this week. Euro was initially higher after the German Chancellor Angela Merkel and the French President Nicolas Sarkozy called for a new European Union treaty that would impose tougher fiscal rules on member nations.
In Germany, the services Purchasing Mangers’ Index (PMI) fell to 50.3 in November, lower than its flash estimate of 51.4 in November. In France, the services PMI rose to 49.6 in November compared to the flash estimate of 49.3.
Additionally, in the Euro-zone, the composite PMI declined to 47.0 in November, less than its flash estimate of 47.2 in November. The services PMI rose to 47.5 in November, compared to 46.4 in October. Meanwhile, the Sentix Investor Confidence decreased to -24.0 in December, compared to -21.2 in November. Retail sales rose 0.4% (MoM) in October, following a 0.6% decline in September.
In the Asian session, at GMT0400, the pair is trading at 1.3375, with the EUR trading 0.12% lower from yesterday’s close.
The pair is expected to find support at 1.3329, and a fall through could take it to the next support level of 1.3283. The pair is expected to find its first resistance at 1.3454, and a rise through could take it to the next resistance level of 1.3533.
Trading trends in the pair today are expected to be determined by release of Gross Domestic Product (GDP) in the Euro-zone and factory orders data in Germany.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
