EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 1.06% against the USD and closed at 1.3688, buoyed by the latest batch of upbeat economic releases from the Euro-zone economy.
In economic releases, Markit manufacturing PMI for the Euro-zone advanced to a reading of 53.9 in January, more than analysts’ expectations for a rise to 53.0, from previous month’s level of 52.7. Likewise, the Euro-zone’s Markit service PMI also rose to a reading of 51.9 in January, surpassing market estimates for a rise to 51.4, from a level of 51.0 registered in the preceding month. All-in-all, the Euro-zone’s Markit composite PMI advanced more-than-expected to a level of 53.2 in January, from a figure of 52.1 registered in the prior month. Separately, the consumer confidence in the Euro-zone economy improved to a reading of -11.7 in January, better than market expectations and compared to a reading of -13.5 seen in the preceding month.
Meanwhile, the greenback gave up ground against the Euro-zone’s single currency, after data showed that initial jobless claims in the nation rose to 326,000 last week, in line with market expectations, and after Markit Economics reported that its manufacturing PMI index for the US economy unexpectedly declined to a level of 53.7 in the month of January.
In the Asian session, at GMT0400, the pair is trading at 1.3686, with the EUR trading tad lower from yesterday’s close.
The pair is expected to find support at 1.3582, and a fall through could take it to the next support level of 1.3479. The pair is expected to find its first resistance at 1.3744, and a rise through could take it to the next resistance level of 1.3803.
Amid a lack of major economic releases from the Euro-zone today, traders are expected to keep a tab on global economic news for further guidance in the pair.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
