EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.09% against the USD and closed at 1.1750, after the European Central Bank Chief, Mario Draghi stated that he expects “vigorous” pickup in Eurozone’s inflation.
On the macro front, Germany’s Ifo current assessment index eased to a level of 106.4 in September, overshooting market expectations for a drop to a level of 106.0. In the previous month, the index had registered a revised reading of 106.5. Meanwhile, the business expectations index slid to a level of 101.0 in September, higher than market expectations for a fall to a level of 100.5. In the preceding month, the index had recorded a revised reading of 101.3. Further, the nation’s Ifo business climate index declined to a level of 103.7 in September, more than market consensus for a drop to a level of 103.2. The index had registered a revised level of 103.9 in the prior month.
In the US, data showed that the Dallas Fed manufacturing business index unexpectedly eased to a level of 28.1 in September, defying market expectations for an advance to a level of 31.0. The index had registered a level of 30.9 in the prior month. Moreover, the nation’s Chicago Fed national activity index remained steady at 0.18 in August, defying market expectations of a rise to 0.20.
In the Asian session, at GMT0300, the pair is trading at 1.1738, with the EUR trading 0.10% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1703, and a fall through could take it to the next support level of 1.1668. The pair is expected to find its first resistance at 1.1794, and a rise through could take it to the next resistance level of 1.1850.
Amid lack of macroeconomic releases in the Euro-zone, investors would focus on the US house price index for July, followed by the Richmond manufacturing index and consumer confidence index, both for September, due to release later in the day.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
