EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.93% against the USD and closed at 1.3372, after German business climate index climbed for a fourth-straight month in January to the highest reading since July.
The Ifo Institute reported that the Business Climate Index in Germany rose to 109.6 in February, from 108.3 in January. Additionally, the Current Conditions Index rose to 117.5 in February, compared to 116.3 in the previous month.
However, EUR pared some of its gains after the European Commission stated that the Euro-zone economy was heading into its second recession in just three years. It lowered its Euro-zone growth forecast from 0.5% to 0.3% for 2012.
Separately, Greece’s parliament, as expected, backed a debt swap with private bondholders, a move that aims to reduce the government’s debt pile by €100 billion ($132 billion).
In the Asian session, at GMT0400, the pair is trading at 1.3373, with the EUR trading steady from yesterday’s close.
The pair is expected to find support at 1.3290, and a fall through could take it to the next support level of 1.3207. The pair is expected to find its first resistance at 1.3418, and a rise through could take it to the next resistance level of 1.3463.
Euro is likely to receive increased market attention, with German GDP data due to be released later today.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
