EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.14% against the USD and closed at 1.1155, following the release of optimistic reports from Germany, the Euro-zone’s largest economy.
Data showed that Germany’s GfK consumer confidence index surprisingly climbed to a nine-month high level of 9.8 in June, as households feel that the nation remains on a path of moderate growth in the coming months. Investors had expected the index to remain steady at a level of 9.7. Additionally, the Ifo business climate index rose above more-than-anticipated to a level of 107.7 in May, following a reading of 106.6 in the previous month. Further, the Ifo current assessment index registered a rise to a level of 114.2 in May, higher than market expectations of an advance to 113.3. The Ifo current assessment index had recorded a level of 113.2 in the previous month. Moreover, the Ifo business expectations index rose to a level of 101.6 in May, compared to a revised reading of 100.5 in the prior month. Market anticipation was for the index to advance to a level of 100.8.
In the US, preliminary Markit services PMI unexpectedly declined to a level of 51.2. Markit services PMI had registered a reading of 52.8 in the prior month. On the other hand, the nation’s house price index registered a rise of 0.7% MoM in March, higher than market expectations for an advance of 0.4%. In the previous month, the housing price index had advanced by a revised 0.5%. Further, US mortgage applications rebounded by 2.3% in the week ended 20 May 2016, following a revised drop of 1.0% in the previous week.
In the Asian session, at GMT0300, the pair is trading at 1.1174, with the EUR trading 0.17% higher from yesterday’s close.
The pair is expected to find support at 1.1140, and a fall through could take it to the next support level of 1.1107. The pair is expected to find its first resistance at 1.1193, and a rise through could take it to the next resistance level of 1.1213.
Going ahead, investors will look forward to the US initial jobless claims, pending home sales and durable goods orders data, scheduled to release later today.
The currency pair is trading above its 20 Hr moving average and is showing convergence with its 50 Hr moving average.
