EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.39% against the USD and closed at 1.2936, after German ZEW economic sentiment disappointed investors along with slowed down in inflation figures across the Europe.
The ZEW survey reported that economic sentiment in Germany rose less-than-expected to 36.4 in May, from a reading of 36.3 recorded in the previous month. Meanwhile, annual consumer price inflation in the nation rose to 1.2% in April, following a 1.4% rise recorded in March. Italy recorded a higher than expected inflation figures, while Spanish consumer prices came in line with market expectations in April. However, on a positive note, the Euro-zone industrial production rose 1.0% (MoM) in March, following a revised 0.3% growth recorded earlier.
Also, Greece came into headlines yesterday, after the Fitch Ratings upgraded the country’s sovereign rating by one notch to “B-”, with a “Stable” outlook.
In the Asian session, at GMT0300, the pair is trading at 1.2933, with the EUR trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.2887, and a fall through could take it to the next support level of 1.2842. The pair is expected to find its first resistance at 1.3004, and a rise through could take it to the next resistance level of 1.3076.
The Euro-zone GDP data along with the first quarter growth data in Germany, France and Italy due later today is expected to have strong influence on the movement of the Euro against the majors.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
