EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.33% against the USD and closed at 1.1395.
The US dollar declined against its major peers, following disappointing factory data.
Data showed that the US ISM manufacturing activity index dropped to a two-year low level of 54.1 in December, overshooting market expectations for a fall to a level of 57.5. In the prior month, the index had registered a level of 59.3. Moreover, the nation’s mortgage applications dropped 8.5% on a weekly basis in the week ended 28 December 2018, amid worries over economic slowdown and following a decline of 5.8% in the previous week. Additionally, the seasonally adjusted initial jobless claims unexpectedly climbed to a four-week high level of 231.0K in the week ended 29 December 2018, defying market anticipations for a fall to a level of 220.0K. In the prior week, the initial jobless claims had registered a revised reading of 221.0K.
On the other hand, the nation’s ADP private sector employment advanced to a level of 271.0K in December, notching its highest level since February 2017. The ADP employment had recorded a revised rise of 157.0K in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.1397, with the EUR trading slightly higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1353, and a fall through could take it to the next support level of 1.1308. The pair is expected to find its first resistance at 1.1427, and a rise through could take it to the next resistance level of 1.1456.
Going ahead, traders would await Euro-zone’s consumer price index for December and producer price index for November along with Germany’s unemployment rate for December, set to release in a few hours. Also, the Markit services PMI for December, slated to release across the Euro-zone, will keep investors on their toes. Later in the day, the US unemployment rate, change in non-farm payrolls, average hourly earnings and services PMI, all for December, will pique significant amount of investors’ attention.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
