EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.25% against the USD, on Friday, and closed at 1.3393, after Fitch Ratings Agency downgraded rating of Spain and Italy, renewing concerns over the eurozone debt crisis. Fitch Rating Agency, on Friday, downgraded Italy’s credit rating to A+ from AA-, and it also downgraded Spain’s rating to AA- from AA+ and stated that the rating outlook is negative.
German Chancellor, Angela Merkel and French President, Nicolas Sarkozy, yesterday, announced that they would design a plan to recapitalize banks, and get Greece on the right track.
In economic news, industrial production in Germany declined 1.0% (M-o-M) in August, following a 3.9% growth recorded in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.3452, with the EUR trading 0.44% higher from Friday’s close.
The pair is expected to find support at 1.3367, and a fall through could take it to the next support level of 1.3282. The pair is expected to find its first resistance at 1.3531, and a rise through could take it to the next resistance level of 1.3610.
Trading trends in the pair today are expected to be determined by data release on sentix investor confidence in eurozone.
The currency pair is trading just above its 20 Hr and its 50 Hr moving averages.
