EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.32% against the USD and closed at 1.0721.
Macroeconomic data showed that the Italy’s industrial production rose less-than-anticipated by 0.2% MoM in September, after declining by 0.5% in the previous month. Investors had expected it to advance 0.6%. On the other hand, industrial output in France unexpectedly rose 0.1% during the same month, compared to a revised rise of 1.7% in the previous month. Market anticipation was for it to ease 0.4%.
The greenback gained ground, after the US wholesale inventories for September recorded its biggest gain in three months. Data showed that wholesale inventories in the US rose unexpectedly by 0.5% in September, compared to a 0.3% gain in the previous month. Investors had expected it to remain flat. Further, the US NFIB small business optimism index remained unchanged at a reading of 96.1 in October, against market expectations of the index to climb to a level of 96.4.
In the Asian session, at GMT0400, the pair is trading at 1.0765, with the EUR trading 0.41% higher from yesterday’s close.
The pair is expected to find support at 1.0700, and a fall through could take it to the next support level of 1.0635. The pair is expected to find its first resistance at 1.0802, and a rise through could take it to the next resistance level of 1.0840.
Moving ahead, market participants will closely watch the ECB President, Mario Draghi’s speech, scheduled later in the day. Additionally, investors will also look forward to the US MBA mortgage applications data for November, scheduled to be released later today.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
