EURUSD Movement
On Friday, EUR rose 0.62% against the USD and closed at 1.2983, as sentiment improved after Cyprus agreed with Greece on a takeover of the Greek units of Cypriot banks, easing fears of the country’s exit from the Euro-zone.
In economic news, Germany’s business confidence index retreated unexpectedly to a reading of 106.7 in March, while the expectations index dropped to a reading 103.6 in March and the assessment of current conditions slipped to a reading of 109.9 in March.
In the Asian session, at GMT0400, the pair is trading at 1.3036, with the EUR trading 0.41% higher from Friday’s close, following the news that Cyprus reached a bailout agreement with the European Central Bank (ECB), the European Commission and the International Monetary Fund.
Following this, the Head of the European Stability Mechanism (ESM), Klaus Regling, indicated that the island nation would receive the first tranche of a €10.0 billion international bailout in early May 2013 after all formalities are completed in April 2013.
The pair is expected to find support at 1.2932, and a fall through could take it to the next support level of 1.2829. The pair is expected to find its first resistance at 1.3094, and a rise through could take it to the next resistance level of 1.3153.
In the US, investors eagerly await the Federal Reserve Chairman, Ben Bernanke’s speech scheduled later today, as his comments will be closely watched for any indication of the possible future direction of monetary policy.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
