EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.40% against the USD and closed at 1.3233, after Greece completed the first phase of auction to determine the payout on credit default swaps.
Risk sentiment was further boosted, after the Euro-zone’s current account surplus widened more-than-expected in January. On a seasonally adjusted basis, the current account surplus in the Euro-zone rose to €4.5 billion in January, compared to a surplus of €3.4 billion recorded in the previous month. Meanwhile, construction output fell 1.4% (YoY) in January, compared to a revised 9.8% growth recorded in December. Separately, industrial sales in Italy fell 4.9% in January.
Meanwhile, the greenback came under pressure, amid speculation of another round of monetary easing, after President of the New York Federal Reserve Bank, William Dudley, stated that despite some positive signs on growth, the US economy still faces significant downside risks.
In the Asian session, at GMT0400, the pair is trading at 1.3237, with the EUR trading 0.03% higher from yesterday’s close.
The pair is expected to find support at 1.3164, and a fall through could take it to the next support level of 1.3091. The pair is expected to find its first resistance at 1.3287, and a rise through could take it to the next resistance level of 1.3338.
Trading trends in the pair today are expected to be determined by the release of German producer prices.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
