EURUSD Movement
For the 24 hours to 23:00 GMT on Friday, EUR rose 0.24% against the USD and closed at 1.2658. The US Dollar fell after weak consumer sentiment and industrial production data in the US, raised speculation of stimulus measures by the Federal Reserve at its monetary policy meeting on June 19-20.
The Euro received support, after the Euro-zone trade surplus, on a seasonally adjusted basis, increased more-than-expected to €6.2 billion in April, from €3.7 billion in March. However, Euro-zone employment rate, on a seasonally adjusted basis, fell 0.2% (QoQ) in first quarter of 2012, compared to a 0.3% contraction in the previous quarter. In Italy, the total trade balance showed a deficit of €202 million in April, compared to a surplus of €2.07 billion in March.
Meanwhile, the European Central Bank (ECB) President, Mario Draghi, stated there are no inflation risks in the 17-nation Euro-area and that central banks would continue to supply liquidity to solvent banks where needed.
In the Asian session, at GMT0300, the pair is trading at 1.2694, with the EUR trading 0.29% higher from Friday’s close, after Greece’s pro-bailout New Democracy party won the national election beating out leftwing Syriza, easing fears that Greece would exit the Euro bloc.
The pair is expected to find support at 1.2608, and a fall through could take it to the next support level of 1.2522. The pair is expected to find its first resistance at 1.2764, and a rise through could take it to the next resistance level of 1.2834.
With no major release from the Euro-zone, the pair is expected to trade on trends in the greenback.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
