EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.58% against the USD and closed at 1.3357, after Federal Reserve Governor, Ben Bernanke, signaled towards monetary easing and as positive data from Euro-zone hinted that the region’s economic recovery is gaining momentum.
Initially, Euro had come under pressure, after Italy’s Prime Minister, Mario Monti, warned that Spain could reignite the Euro-zone’s debt crisis.
However, Euro re-gained momentum, after German business confidence rose to a seven-month high in March, easing concerns about the strength of the German recovery.
The Ifo Institute reported that the Business Climate Index in Germany climbed to 109.8 in March, marking the highest level since July 2011. Additionally, the IFO Current Conditions Index remained unchanged at 117.4 in March, while the Expectations Index rose to a reading of 102.7 in March.
Highlighting a brighter scenario, European Central Bank (ECB) President, Mario Draghi stated that there are signs of stabilization in financial markets and overall economic activity and conditions in bank funding markets have improved.
Meanwhile, Chancellor Angela Merkel indicated that Germany was prepared to allow a boost in the Euro-zone’s firewall against the Euro-zone debt crisis, which further fueled risk appetite.
In the Asian session, at GMT0300, the pair is trading at 1.3349, with the EUR trading 0.06% lower from yesterday’s close.
The pair is expected to find support at 1.3238, and a fall through could take it to the next support level of 1.3127. The pair is expected to find its first resistance at 1.3414, and a rise through could take it to the next resistance level of 1.3479.
Trading trends in the pair today are expected to be determined by the release of German Import Price Index and GfK Consumer Confidence data.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
