EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 1.04% against the USD and closed at 1.3039, after reports that German Chancellor, Angela Merkel rejected raising the upper limit of funding for Europe’s permanent bailout mechanism. Angela Merkel told coalition lawmakers that the €500 billion ($651 billion) cap on Europe’s planned permanent fund will stay in place.
In economic news, the Economic Sentiment Index in Germany rose to -53.8 in December, compared to -55.2 in the previous month. Additionally, the Current Situation Index decreased to 26.8 in December, compared to 34.2 in November. In France, the Consumer Price Index (CPI) rose 2.5% (YoY) in November, compared to 2.3% rise posted in previous month. Additionally, in Euro-zone, the Economic Sentiment rose to -54.1 in December, compared to -59.1 in the previous month. Meanwhile, the Current Situation Index declined to -44.1 in December.
In the Asian session, at GMT0400, the pair is trading at 1.3031, with the EUR trading 0.06% lower from yesterday’s close.
The pair is expected to find support at 1.2948, and a fall through could take it to the next support level of 1.2864. The pair is expected to find its first resistance at 1.3176, and a rise through could take it to the next resistance level of 1.3320.
Trading trends in the pair today are expected to be determined by release of industrial production data in Euro-zone.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
