EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.33% against the USD and closed at 1.3115, amid speculation that a sluggish labor market in the US would prompt Federal Reserve to open the door to more easing measures, which sent the US Dollar falling.
However, sentiment on the Euro remained downbeat after a poorly received auction of Spanish government debt last week saw the country’s borrowing costs rise, sparking fears that the country may be the next in the Euro-zone to require a bailout.
The Bank of England policymaker, Adam Posen stated yesterday, that recent decisive monetary policy action by the European Central Bank would not prevent unemployment in the Euro-zone from remaining high over the next two years, with Germany the exception.
In the Asian session, at GMT0300, the pair is trading at 1.3142, with the EUR trading 0.20% higher from yesterday’s close.
The pair is expected to find support at 1.3079, and a fall through could take it to the next support level of 1.3016. The pair is expected to find its first resistance at 1.3175, and a rise through could take it to the next resistance level of 1.3207.
Trading trends in the pair today are expected to be determined by release of Sentix Investor Confidence Index in Euro-zone and current account data in Germany.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
