EURUSD Movement
On Friday, EUR rose marginally against the USD and closed at 1.3837, drawing support from upbeat German economic data released on Wednesday and Thursday.
In a noteworthy event, Fitch Ratings confirmed Italy’s sovereign debt rating at “BBB+” and raised its outlook to “Stable” from “Negative.” Separately, the rating agency also expressed optimism on Spain’s financing conditions and raised the nation’s credit rating by one-level to “BBB+” from “BBB.”
Meanwhile, the greenback came under pressure after Markit Economics reported that its index on the US service sector unexpectedly fell nearly 2.0% to a reading of 54.2 in April. However, negative sentiment for the US Dollar were somewhat pared after the Reuters/Michigan consumer sentiment index in the US rose more than market expectations to a nine-month high reading of 84.1 in April, from a level of 80.0 the month earlier.
In the Asian session, at GMT0300, the pair is trading at 1.3825, with the EUR trading 0.09% lower from Friday’s close.
The pair is expected to find support at 1.3813, and a fall through could take it to the next support level of 1.3801. The pair is expected to find its first resistance at 1.3843, and a rise through could take it to the next resistance level of 1.3861.
Amid lack of major economic releases from the Euro-zone, traders would eye Germany’s import price index and Italy’s consumer confidence data for further guidance in the Euro.
The currency pair is trading just below its 20 Hr and 50 Hr moving averages.
