EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.77% against the USD and closed at 1.1787 on Friday.
On the macro front, Germany’s trade surplus widened to €14.5 billion in June, more than market expectations for a surplus of €10.1 and compared to a revised surplus of €7.5 billion in the earlier month. Additionally, the seasonally adjusted industrial production climbed 8.9% on a monthly basis in June, driven by easing of coronavirus containment measures in the economy and surpassing market consensus for a rise of 8.1%. In the previous month, industrial production had recorded a revised rise of 7.4%. Moreover, current account surplus widened to €22.4 billion in June, beating market forecast for a surplus of €14.2 and compared to a revised surplus of €7.0 billion in the prior month.
In the US, nonfarm payrolls increased by 1763.0K in July, more than anticipations and compared to a revised increase of 4791.0K in the prior month. Additionally, the unemployment rate dropped more-than-expected to 10.2% in July, compared to a rate to 11.1% in the prior month. Moreover, average hourly earnings unexpectedly climbed 0.2% on a monthly basis in July, defying market forecast for a drop of 0.5% and compared to a revised fall of 1.3% in the previous month. Meanwhile, consumer credit jumped by $9.0 billion in June, less than market consensus for a rise of $10.0 billion and compared to a drop of $18.3 billion in the prior month.
In the Asian session, at GMT0300, the pair is trading at 1.1791, with the EUR trading marginally higher against the USD from Friday’s close.
The pair is expected to find support at 1.1741, and a fall through could take it to the next support level of 1.1691. The pair is expected to find its first resistance at 1.1855, and a rise through could take it to the next resistance level of 1.1919.
Going forward, traders would keep a watch on Euro-zone’s Sentix investor confidence for August, slated to release in a few hours. Later in the day, the US JOLTS job openings for June, 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.
