EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR marginally declined against the USD and closed at 1.1734, pressured by heightened political uncertainty in the Euro-zone’s largest economy.
Yesterday, German Chancellor, Angela Merkel stated that she would prefer new elections if she fails to form a majority coalition.
In economic news, Germany’s producer price index (PPI) climbed 2.7% on a yearly basis in October, at par with market expectations and compared to a rise of 3.1% in the prior month.
Macroeconomic data released in the US indicated that the leading indicator rebounded 1.2% in October, exceeding market expectations for a gain of 0.8%. In the prior month, leading indicator had recorded a drop of 0.2%.
In the Asian session, at GMT0400, the pair is trading at 1.1738, with the EUR trading slightly higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1708, and a fall through could take it to the next support level of 1.1677. The pair is expected to find its first resistance at 1.1789, and a rise through could take it to the next resistance level of 1.1839.
With no major macroeconomic releases in the Euro-zone today, investors would focus on the US existing home sales data for October, slated to release later in the day. Additionally, a speech by the Federal Reserve Chair, Janet Yellen due overnight, would keep investors on their toes.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
