EURUSD Movement
On Friday, EUR declined 0.43% against the USD and closed at 1.2828, as dollar strengthened on talks of the Federal Reserve winding down its bond buying program.
In economic news, construction output in the Euro-zone continued to decline for the fifth consecutive month in March, leading to increased speculation that the recovery in the bloc may further deteriorate than expected. Construction output fell at a faster pace of 1.7% (MoM) in March, following a revised 0.3% drop recorded in the previous month. On a yearly basis, overall construction output plunged 7.9%, reversing last month’s 1.7% increase.
Meanwhile the greenback extended its gains on Friday, after the Reuters/Michigan consumer sentiment index in the US rose to a reading of 83.7 in May, from a reading of 76.4 recorded in the previous month. Market had expected a reading of 78.0.
In the Asian session, at GMT0300, the pair is trading at 1.2843, with the EUR trading 0.12% higher from Friday’s close.
The pair is expected to find support at 1.2796, and a fall through could take it to the next support level of 1.2749. The pair is expected to find its first resistance at 1.2890, and a rise through could take it to the next resistance level of 1.2937.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
