EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.35% against the USD and closed at 1.0858.
In the US, MBA mortgage applications dropped 17.9% in the week ended 3 April 2020, compared to a rise of 15.3% in the prior week.
Separately, the Federal Open Market Committee (FOMC), in its March meeting minutes, indicated that all members were of the opinion that the near-term US economic outlook has deteriorated sharply in recent weeks. Also, members expressed concern about the economic impact of COVID-19. In terms of the economic outlook, the Federal Reserve (Fed) stated that interest rates would remain at their current level until the US economy has weathered the coronavirus downturn.
In the Asian session, at GMT0300, the pair is trading at 1.0860, with the EUR trading marginally higher against the USD from yesterday’s close.
The pair is expected to find support at 1.0831, and a fall through could take it to the next support level of 1.0801. The pair is expected to find its first resistance at 1.0889, and a rise through could take it to the next resistance level of 1.0917.
Looking ahead, traders would keep a close watch on Germany’s current account and trade balance, both for February, slated to release in a few hours. Later in the day, the US producer price index for March and the Michigan consumer sentiment index for April, along with initial jobless claims, would keep investors on their toes.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
