EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.35% against the USD and closed at 1.3314, as optimistic comments from the European Central Bank (ECB) Executive Board Member, Jorg Asmussen, and waning tension of Syrian crisis boosted investors’ risk-appetite.
Yesterday, Jorg Asmussen, in a newspaper interview stated that the bailout policy made by the Euro-zone’s officials to aid its crisis-stricken states is bearing fruit. Positive sentiments were also fuelled, as the possibility of a US military strike over Syria waned after the White House confirmed that the US President, Barack Obama would work along with France and Britain to achieve a United Nations resolution over Syria’s commitment to place its chemical weapons under international control.
Meanwhile, in the Euro-zone, a report showed that Germany’s consumer price index rose 1.5% (YoY) during August, at par with market expectation and compared to a 1.9% rise registered in the previous month. Another official report depicted that non-farm payrolls in France declined 0.2% (QoQ) during the second quarter, following a 0.1% drop seen in the earlier quarter.
In the Asian session, at GMT0300, the pair is trading at 1.3320, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.3267, and a fall through could take it to the next support level of 1.3214. The pair is expected to find its first resistance at 1.3349, and a rise through could take it to the next resistance level of 1.3378.
Trading trend in the euro is expected to be determined by the ECB’s monthly report on the prevailing economic situation in the Euro-zone and the ECB President, Mario Draghi’s speech, expected to commence later during the day. Investors are also expected to keep a close watch on the release of Euro-zone’s industrial production report, slated later today.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
