EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.73% against the USD and closed at 1.3238 as the greenback found support from strong US employment and GDP data. In the US, data revealed that initial jobless claims declined to a level of 331,000 during the week ended 23 August 2013, compared to a reading of 337,000 seen in the previous week. Another official report depicted that the US economy grew at an annualized pace of 2.5% during the second quarter, following a 1.1% growth registered in the previous quarter.
Meanwhile, in the Euro-zone, on a seasonally adjusted basis, the German unemployment rate remained unchanged at 6.8% during August, at par with analysts’ expectation. The consumer price inflation in Germany eased to 1.5% (YoY) in August, lower than market expectation for a fall to 1.7% and following a 1.9% rise registered in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.3240, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.3192, and a fall through could take it to the next support level of 1.3145. The pair is expected to find its first resistance at 1.3314, and a rise through could take it to the next resistance level of 1.3389.
Trading trends in the pair today are expected to be determined by Euro-zone’s consumer confidence and industrial confidence data, which the market expects to show improvement in August. Investors also await the release of German retail sales data, slated for later today.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
