EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.17% against the USD and closed at 1.3145, after Euro-zone head, Jean Claude Juncker stated that talks with private creditors on the Greek debt restructuring plan have proven to be “ultra difficult”.
Yesterday, Spain auctioned €4.5billion of medium term debt at lower yields than previously, while France sold €8 billion of debt to strong investor interest and lower yields.
In the Euro-zone, the Producer Price Index (PPI) advanced 4.3% (YoY) in December, compared to a 5.4% rise in November. On a monthly basis, the PPI fell 0.2% in December.
Separately, the Chairman of Federal Reserve, Ben Bernanke stated that there have been “positive” developments in Euro-zone debt crisis in recent weeks, but warned that a slow US recovery remains vulnerable to any shock from the troubled region.
In the Asian session, at GMT0400, the pair is trading at 1.3131, with the EUR trading 0.1% lower from yesterday’s close.
The pair is expected to find support at 1.3080, and a fall through could take it to the next support level of 1.3029. The pair is expected to find its first resistance at 1.3188, and a rise through could take it to the next resistance level of 1.3245.
Trading trends in the pair today are expected to be determined by the release of retail sales and Purchasing Manager Index in the Euro-zone.
The currency pair is converging with its 20 Hr and trading just below its 50 Hr moving average.
