EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.19% against the USD and closed at 1.1529.
On the data front, the Euro-zone’s seasonally adjusted construction output eased 0.7% on a monthly basis in May, following a gain of 0.3% in the prior month.
In other economic news, housing starts in the US rebounded more-than-expected by 8.3% on monthly basis, to an annual rate of 1215.0K in June, surging to a four-month high level, suggesting an upturn in the housing sector was on the cards. Market participants had envisaged housing starts to climb to a level of 1160.0K, compared to a revised reading of 1122.0K recorded in the previous month. Moreover, the nation’s building permits climbed more-than-anticipated by 7.4% on a monthly basis, to an annual rate of 1254.0K in June, compared to a level of 1168.0K in the prior month, while markets were expecting for a rise to a level of 1201.0K. Also, the nation’s MBA mortgage applications rebounded 6.3% in the week ended 14 July, after recording a drop of 7.4% in the previous week.
In the Asian session, at GMT0300, the pair is trading at 1.1526, with the EUR trading marginally lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1508, and a fall through could take it to the next support level of 1.1490. The pair is expected to find its first resistance at 1.1546, and a rise through could take it to the next resistance level of 1.1566.
Later today, all eyes would be on the European Central Bank’s (ECB) interest rate decision, wherein investors would be keen to get cues on any fresh guidance towards changes to its bond-buying plan in the coming months. Additionally, in the US, initial jobless claims followed by leading indicators data for June, slated to release later in the day, will be on investors’ radar.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
