EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.46% against the USD and closed at 1.3181, after European industrial production gained unexpectedly in February.
However, the gains in the Euro came down later in the session, amid lack luster Italian bond auction.
Italy auctioned €2.88 billion of the €3.0 billion of three-year bonds on offer, at an average yield of 3.89%, compared to 2.76% in last month.
Separately, the European Central Bank (ECB), in its monthly report, indicated that the moderate economic recovery seen recently is subject to downside risks as inflation threatens to devalue the Euro. It stated that Euro-zone inflation is expected to stay above 2.0% in 2012, with upside risks prevailing.
On the economic front, industrial production in Euro-zone rose 0.5% (MoM) in February, after remaining flat in previous month. Analysts had forecasted a 0.2% monthly decline. In France, the current account deficit widened to €5.0 billion in February, compared to a €4.4 billion deficit in January. The Consumer Price Index (CPI) climbed 0.8% (MoM) in March.
In the Asian session, at GMT0300, the pair is trading at 1.3174, with the EUR trading 0.06% lower from yesterday’s close.
The pair is expected to find support at 1.3113, and a fall through could take it to the next support level of 1.3053. The pair is expected to find its first resistance at 1.3224, and a rise through could take it to the next resistance level of 1.3274.
Trading trends in the pair today are expected to be determined by release of Consumer Price Index (CPI) in Germany.
The currency pair is showing convergence with its 20 Hr and is trading above its 50 Hr moving average.
