EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR traded a tad higher against the USD and closed at 1.2227, after consumer confidence in the common-currency bloc rose in December.
Yesterday’s data showed that Euro-zone’s consumer confidence improved more than expected to -10.9 in December, compared to previous month’s level of -11.5, while markets were expecting it to advance to a reading of -11.0.
Elsewhere, in Germany, the import price index eased 0.8% on a MoM basis in November, higher than market expected drop of 0.7%. The index had declined 0.3% in October. Meanwhile, Italy’s (non-EU) trade surplus narrowed to €2.72 billion in November, after expanding to €4.02 billion in the preceding month.
The greenback traded on a weaker footing, following worse than expected existing home sales data in the US.
Existing home sales dropped 6.1% on a monthly basis, hitting a six-month low in December, worse than market expectations for a 1.1% fall and after advancing 1.4% in the previous month.
In other economic data, the nation’s Chicago Fed national activity index climbed unexpectedly to a level of 0.73 in November and following a revised reading of 0.31 recorded in the preceding month. Markets were expecting the index to drop to a level of 0.25.
In the Asian session, at GMT0400, the pair is trading at 1.2231, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.2207, and a fall through could take it to the next support level of 1.2183. The pair is expected to find its first resistance at 1.2264, and a rise through could take it to the next resistance level of 1.2298.
Trading trends in the pair today are expected to be determined by the US durable goods orders data, scheduled later today.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
