EURUSD Movement
On Friday, EUR declined 1.22% against the USD and closed at 1.2388, after the ECB Chief, Mario Draghi reiterated that the central bank stands ready to expand its asset purchases, if inflation continues to persist in the common-currency region for a prolonged period of time.
Over the weekend, the ECB’s Vice President, Vitor Constancio stated that current low inflation level in Europe is a cause of concern but it was not at risk of entering a “full deflation” cycle.
In the US, the Kansas City Fed manufacturing activity index climbed to 7.0 in November, compared to market expectations of a rise to 6.0, following a reading of 4.0 recorded in the prior month.
In the Asian session, at GMT0400, the pair is trading at 1.2396, with the EUR trading 0.06% higher from Friday’s close.
The pair is expected to find support at 1.2315, and a fall through could take it to the next support level of 1.2234. The pair is expected to find its first resistance at 1.2522, and a rise through could take it to the next resistance level of 1.2649.
Trading trends in the Euro today are expected to be determined by Germany’s IFO economic indicators data, set for release in a few hours. Meanwhile, market participants would also concentrate on the US services PMI data, scheduled later today.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
