EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose marginally against the USD and closed at 1.2861, though concerns remained that the banking solution in Cyprus could be a model used in other economically challenged European nations.
Meanwhile, investor sentiment further deteriorated after the rating agency, Standard & Poor’s indicated that it expects the region’s gross domestic product to shrink in 2013 and recover marginally in 2014.
In economic front, consumer confidence index in France dropped to a reading of 84.0 in March, following a reading of 86.0 in February.
In the US, new home sales climbed 411,000 in February, following a revised 431,000 rise in the previous month. Also, the Standard & Poor’s/Case Shiller composite 20 house price index rose to an annualized rate of 8.1% in January, from a rate of 6.8% the previous month, beating expectations for a rise to 7.9%. However, the Conference Board indicated that its index of consumer sentiment fell unexpectedly to a reading of 59.7 in March, from a revised reading of 68.0 the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.2842, with the EUR trading 0.15% lower from yesterday’s close.
The pair is expected to find support at 1.2816, and a fall through could take it to the next support level of 1.2791. The pair is expected to find its first resistance at 1.2879, and a rise through could take it to the next resistance level of 1.2917.
The Euro-zone is slated to release its preliminary data on consumer inflation, which accounts for a majority of overall inflation, while Germany’s Gfk consumer confidence survey and the French GDP are also due later today.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
