EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.38% against the USD and closed at 1.3079, after the executive board of the International Monetary Fund (IMF) approved a €28 billion ($36.49 billion) loan for Greece. The approval would allow for an immediate disbursement of around €1.65 billion to Greece to hold back default.
Additionally, the European Central Bank (ECB) in its monthly report today stated that it sees signs of stabilization in the Euro-zone economy. However, the ECB also warned of upside risks to inflation as economic growth starts to gradually pick up.
Investors risk appetite was also boosted after the French Treasury Agency successfully met the maximum limit on its bond auction at low borrowing cost, while Spain’s bond auction was a mixed bag, with the Treasury selling slightly less than the maximum targeted amount but paying mostly lower yields to investors.
In the Asian session, at GMT0400, the pair is trading at 1.3095, with the EUR trading 0.12% higher from yesterday’s close.
The pair is expected to find support at 1.3034, and a fall through could take it to the next support level of 1.2973. The pair is expected to find its first resistance at 1.3138, and a rise through could take it to the next resistance level of 1.3181.
The pair is expected to trade on the cues from Euro-zone trade and Italian balance data.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
