EURUSD Movement
On Friday, EUR rose marginally against the USD and closed at 1.3062.
The European Central Bank (ECB) board member Jens Weidmann stated that interest rates in Europe are appropriate given current conditions. However, the Euro remained vulnerable as he warned that if economic data worsens, rates should be checked again.
The Euro-zone’s current account surplus widened to €16.3 billion in February, from a downwardly revised €13.8 billion surplus recorded in January. Meanwhile, Germany’s annual producer price inflation (PPI) climbed to 0.4% in March, following a 1.2% increase recorded in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.3076, with the EUR trading 0.11% higher from Friday’s close.
The pair is expected to find support at 1.3042, and a fall through could take it to the next support level of 1.3008. The pair is expected to find its first resistance at 1.3120, and a rise through could take it to the next resistance level of 1.3164.
With not much on the European economic calendar today, the direction in the pair is likely to be determined by the release of US existing home sales data.
The currency pair is showing convergence with its 20 Hr moving average and is trading just above its 50 Hr moving average.
