EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.48% against the USD and closed at 1.2708, following a weak German GDP data.
The Euro was further pressured after the head of sovereign ratings for Fitch Ratings indicated that the European Central Bank should increase purchases of troubled government bonds in order to save Italy and prevent a “cataclysmic” euro collapse.
In economic news, the German Federal Statistics Office indicated that the Gross Domestic Product (GDP) edged up 3.0% in 2011, compared to a growth rate of 3.7% recorded in 2010.
In the Asian session, at GMT0400, the pair is trading at 1.2719, with the EUR trading 0.09% higher from yesterday’s close.
The pair is expected to find support at 1.2658, and a fall through could take it to the next support level of 1.2596. The pair is expected to find its first resistance at 1.2785, and a rise through could take it to the next resistance level of 1.2851.
Trading trends in the pair today are expected to be determined by data release of the Euro-zone’s industrial production and the European Central Bank (ECB) Rate Decision.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
