EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined marginally against the USD on Friday and closed at 1.3142, as leaders failed to reach an agreement with Greek bondholders on a restructuring of the nation’s debt.
The Financial Times reported that Greek ministers are reluctant to fully accept demands from the ‘Troika’ (the European Commission, ECB and IMF) that would impose significant cuts on private sector wages, state pensions and the closure of state-controlled organisations in return for the additional funds.
On the economic front, retail sales in the Euro-zone eased 0.4% (MoM) in December. The composite Purchasing Managers’ Index (PMI) in the Euro-zone rose to 50.4 in January, while the service sector PMI stood at a reading of 50.4 in January, from the earlier flash estimate of 50.5. Additionally, the service sector PMI in Germany came in at 53.7 in January, from the flash estimate of 54.5. Moreover, the final service sector PMI in France rose to a reading of 52.3 in January, marking the highest level in five months.
In the Asian session, at GMT0400, the pair is trading at 1.3089, with the EUR trading 0.41% lower from Friday’s close.
The pair is expected to find support at 1.3035, and a fall through could take it to the next support level of 1.2981. The pair is expected to find its first resistance at 1.3174, and a rise through could take it to the next resistance level of 1.3260.
Trading trends in the pair today are expected to be determined by the release of Sentix investor confidence in the Euro-zone and German factory orders data.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
