EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.76% against the USD and closed at 1.1989.
Macroeconomic data released in the US indicated that the ISM manufacturing activity index declined more-than-anticipated to a level of 57.3 in April, hitting a 9-month low level and pointing towards some moderation in the nation’s economic activity. In the previous month, the index had registered a reading of 59.3, while market participants had expected for a drop to a level of 58.5. On the other hand, the nation’s final Markit manufacturing PMI advanced to a level of 56.5 in April, meeting the preliminary print. In the prior month, the PMI had registered a reading of 55.6.
In other economic news, the nation’s construction spending unexpectedly retreated 1.7% on a monthly basis in March, dropping by the most in 11 months. Construction spending had registered a revised gain of 1.0% in the previous month, while markets were anticipating for an advance of 0.5%.
In the Asian session, at GMT0300, the pair is trading at 1.2006, with the EUR trading 0.14% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1966, and a fall through could take it to the next support level of 1.1926. The pair is expected to find its first resistance at 1.2062, and a rise through could take it to the next resistance level of 1.2118.
Going ahead, market participants would keep a close watch on the Euro-zone’s flash 1Q GDP numbers as well as unemployment rate data for March, both due to release in a few hours. Also, the release of final Markit manufacturing PMI for April across the Euro-zone will be on investors’ radar. Later in the day, traders would focus on the US Federal Reserve’s (Fed) monetary policy meeting for clues on the central bank’s near-term monetary policy intentions. Moreover, the release of US ADP employment change data for April, will keep investors on their toes.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
