EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.36% against the USD and closed at 1.1745.
On the macro front, French consumer confidence index unexpectedly dropped to a level of 101.0 in September, hitting a five-month low level. Market participants had anticipated the index to remain steady at 103.0.
On the other hand, Italy’s consumer confidence index surprisingly climbed to a twenty-month high level of 115.5 in September, defying market expectation for a decline to a level of 110.6 and following a revised level of 111.2 in the previous month.
The greenback gained ground against its major counterparts, after data showed that flash durable goods orders in the US rebounded more-than-expected by 1.7% MoM in August, pointing to a continued upswing in the nation’s business investment. Durable goods orders had registered a drop of 6.8% in the prior month, while markets were anticipating for a rise of 1.0%.
On the contrary, the nation’s pending home sales slid more-than-anticipated by 2.6% on a monthly basis in August, hitting its lowest level in nearly two years, amid a tighter supply of homes and rising prices. Pending home sales had recorded a drop of 0.8% in the prior month, while market participants had envisaged for a drop of 0.5%.
Gains in the US Dollar were boosted further, after the US President, Donald Trump, proposed the biggest US tax overhaul in three decades.
The US President offered to slash corporate income tax rates to 20.0% from 35.0%, cut taxes for small businesses and reducing the highest individual income tax rate to 35.0% from 39.6%.
In the Asian session, at GMT0300, the pair is trading at 1.1740, with the EUR trading slightly lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1707, and a fall through could take it to the next support level of 1.1675. The pair is expected to find its first resistance at 1.1782, and a rise through could take it to the next resistance level of 1.1825.
Moving ahead, investors will look forward to the Euro-zone’s final consumer confidence index as well as Germany’s flash inflation numbers, both for September, slated to release in a few hours. Moreover, the US 2Q GDP, advance goods trade balance for August and initial jobless claims data, all slated to release later in the day, will pique significant amount of investor attention.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
