EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.46% against the USD and closed at 1.2536, after dismal Euro- zone economic data sparked fresh concerns over the impact of the crisis on the region’s troubled economy and amid continued threat of Greece’s possible exit from the monetary union.
The Euro fell after manufacturing purchasing managers’ index (PMI) in Euro-zone, contracted at the fastest pace to 45.0 in May, while service PMI fell to 46.5 in May, steepest pace in seven months.
Additionally, manufacturing PMI in Germany declined to 45.0 in May, while Ifo business climate index dropped to 106.9, making it the steepest decline since August.
However, GDP in Germany expanded 0.5% (QoQ) in the first quarter of 2012, as estimated in the preliminary report. Separately, in France, manufacturing PMI slipped to a 36-month low of 44.4 in May.
Meanwhile, European Central Bank (ECB) President, Mario Draghi, stated that Europe’s leaders need to make a “joint and irreversible” decision for economic and political construction which would sustain the single currency.
In the Asian session, at GMT0300, the pair is trading at 1.2522, with the EUR trading 0.11% lower from yesterday’s close.
The pair is expected to find support at 1.2485, and a fall through could take it to the next support level of 1.2449. The pair is expected to find its first resistance at 1.2590, and a rise through could take it to the next resistance level of 1.2657.
Trading trends in the pair today are expected to be determined by the release of consumer confidence survey in Germany.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
