EURUSD Movement
For the 24 hours to 23:00 GMT, EUR traded almost unchanged against the USD and closed at 1.3120. The Euro-zone current account balance unexpectedly showed a deficit in February, compared to surplus in previous month. Additionally, downbeat construction output in Euro-zone, further weighed on the currency.
The current account deficit in Euro-zone stood at €1.3 billion in February, compared to a €3.7 billion surplus recorded in January. Additionally, the construction output in the Euro-zone fell 7.1% (MoM) in February, compared to the revised 0.5% drop in January.
Separately, Portuguese Prime Minister, Pedro Passos Coelho stated that the timeframe for the nation to return to international capital markets following its bailout might be delayed to September 2013.
Additionally, French President, Nicolas Sarkozy stated that Euro’s exchange rate against the dollar must be discussed with the European Central Bank. He added that Euro is too expensive and a stronger euro hurts exporters.
Moreover, Italian Prime Minister Mario Monti warned that a deeper-than-expected recession would mean the country would miss its pledge to balance the budget by two years.
In the Asian session, at GMT0300, the pair is trading at 1.3120, with the EUR trading flat from yesterday’s close.
The pair is expected to find support at 1.3072, and a fall through could take it to the next support level of 1.3025. The pair is expected to find its first resistance at 1.3152, and a rise through could take it to the next resistance level of 1.3184.
The currency pair is showing convergence with its 50 Hr moving average and is trading above its 20 Hr moving average.
