EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.21% against the USD and closed at 1.3225, after European Central Bank (ECB) President Mario Draghi stated that ECB expects banks to use its liquidity injection of €520 billion to refinance the real economy. He further stated that risks are now ‘broadly balanced’.
Separately, the German government confirmed 2012 economic growth projection for the nation at 0.7%, while kept 2013 growth projection unchanged at 1.6%. Additionally, German economy minister Philipp Roesler stated that the economy is back on track.
Additionally, the ECB executive board member, Jose Manuel Gonzalez-Paramo, affirmed that Spain will be able to cover its 2012 financing needs despite rising borrowing costs.
Meanwhile, the greenback weakened in the wake of Federal Reserve Chairman, Ben Bernanke’s comments that the US central bank would not rule out the use of monetary stimulus measures should the economy warrant.
In the Asian session, at GMT0300, the pair is trading at 1.3229, with the EUR trading 0.03% higher from yesterday’s close.
The pair is expected to find support at 1.3190, and a fall through could take it to the next support level of 1.3151. The pair is expected to find its first resistance at 1.3252, and a rise through could take it to the next resistance level of 1.3275.
Trading trends in the pair are expected to be determined by release of consumer confidence, economic confidence and industrial confidence in the Euro-zone.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
