EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.30% against the USD and closed at 1.3076, as investors became wary about the Spanish economic recovery after reports showed an increase in Spanish borrowing costs.
Earlier yesterday, the Spanish 10-year government bonds rose to 5.9% from 5.8% raising concerns that the country would be the next in Europe to require a bailout. Additionally, a poor Euro-zone sentix investor confidence data further weighed on investor sentiment.
In economic news, in Germany, the trade surplus widened to €14.7 billion in February, compared to a €13.2 billion surplus in January. The current account surplus widened to €11.1 billion in February, following a surplus of €9.5 billion in January. Meanwhile, in Euro-zone, the Sentix Investor Confidence Index fell to -14.7 in April, compared to -8.2 in March.
In the Asian session, at GMT0300, the pair is trading at 1.3088, with the EUR trading 0.09% higher from yesterday’s close.
The pair is expected to find support at 1.3047, and a fall through could take it to the next support level of 1.3006. The pair is expected to find its first resistance at 1.3137, and a rise through could take it to the next resistance level of 1.3186.
Trading trends in the pair today are expected to be determined by release of Wholesale Price Index in Germany.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
