EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.55% against the USD and closed at 1.0868.
In the US, initial jobless claims rose to a nearly six-month high level of 287.0K in the week ended 26 December 2015, higher than market expectations of an advance to a level of 270.0K and after registering a reading of 267.0K during the previous week. Moreover, the nation’s Chicago purchasing manager index unexpectedly dropped to a level of 42.9 in December, its lowest reading since July 2009, from a reading of 48.7 in the previous month and compared to investor expectations for a rise to a level of 50.0.
In the Asian session, at GMT0400, the pair is trading at 1.0871, with the EUR trading 0.08% higher from Thursday’s close.
The pair is expected to find support at 1.0840, and a fall through could take it to the next support level of 1.0809. The pair is expected to find its first resistance at 1.0889, and a rise through could take it to the next resistance level of 1.0907.
Going ahead, market participants will look forward to the release of Markit manufacturing PMI data across the Euro-zone, due in a few hours along with Germany’s consumer price inflation data for December, scheduled to release later today. Additionally, investors will also concentrate on the US Markit manufacturing PMI, ISM Manufacturing PMI and construction spending data, due later in the day.
The currency pair is trading above its 20 Hr moving average and is showing convergence with its 50 Hr moving average.
