EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.56% against the USD and closed at 1.3056, as reports that Euro-zone officials were considering to delay the next Greek bailout package until after the April elections, dented investor sentiment.
The Greek Finance Minister, Evangelos Venizelos, stated that the troika is shifting terms of €130 billion bailout deal as part of move to force country out of Euro-zone.
On the economic front, on a seasonally adjusted quarterly basis, German Gross Domestic Product (GDP) declined 0.2% in the 4QFY2011, compared to an upwardly revised 0.6% growth recorded in 3QFY2011. Additionally, Euro-zone GDP eased 0.3% in 4QFY2011, marking the first decline since the second quarter of 2009. However, the trade surplus in the Euro-zone widened to €9.7 billion in December, from a revised surplus of €6.3 billion in November.
In the Asian session, at GMT0400, the pair is trading at 1.3030, with the EUR trading 0.2% lower from yesterday’s close.
The pair is expected to find support at 1.2962, and a fall through could take it to the next support level of 1.2893. The pair is expected to find its first resistance at 1.3144, and a rise through could take it to the next resistance level of 1.3259.
Trading trends in the pair today are expected to be determined by the release of ECB February monthly report.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
