EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.30% against the USD and closed at 1.1265.
In economic news, Germany’s Ifo business climate index surprisingly declined to a level of 106.6 in April, in a latest sign that the Euro-zone’s largest economy is losing some of its pace. Investors had expected it to rise to a level of 107.1, after registering a reading of 106.7 in the previous month. Additionally, the nation’s Ifo current assessment index surprisingly dropped to a level of 113.2 in April, while investors expected it to remain steady at a level of 113.8. Moreover, the Ifo business expectations index rose less than anticipated to a level of 100.4 in April, compared to market expectations for it to rise to a level of 100.9. It followed a reading of 100.0 in the previous month.
The greenback lost ground, after an unexpected drop in US new home sales added to investor uncertainty over the economy’s outlook ahead of the Federal Reserve’s monetary policy meeting tomorrow. Data showed that new home sales dropped 1.5% MoM to a level of 511.0K in March, falling for the third consecutive month. Market anticipation was for new home sales to climb to a level of 520.0K, compared to a revised level of 519.0K in the prior month. Moreover, the Dallas Fed manufacturing business index unexpectedly fell to a level of -13.9 in April, compared to market expectations of a rise to a level of -10.0. The index had recorded a level of -13.6 in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.127, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.1241, and a fall through could take it to the next support level of 1.1211. The pair is expected to find its first resistance at 1.1290, and a rise through could take it to the next resistance level of 1.1309.
Going ahead, investors will look forward to the US Markit services PMI, consumer confidence and durable goods orders data, scheduled to release later today.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
