EURUSD Movement
For the 24 hours to 23:00 GMT on Friday, EUR declined marginally against the USD and closed at 1.3182, as downbeat comments by the European Commission added to concerns over the outlook for growth in the Euro-zone. However, upbeat German business climate data helped lift the Euro.
On Friday, the European Commission projected that the Euro-zone economy would contract by 0.3% in 2013, compared to the previous estimate of 0.1% growth, thereby driving unemployment higher.
However, the losses in the single currency were capped as Germany’s business climate index climbed to a reading of 107.4 in February, higher than the expected reading of 104.9. Similarly, the current conditions index advanced to a score of 110.2 in February, against the expected score of 108.5. Meanwhile, the expectations index rose to 104.6 in February, against the forecast of 101.4. Separately, Germany’s Gross Domestic Product climbed 0.1% annually in the Q4 FY2012, from a similar rise recorded in the previous quarter.
In the Asian session, at GMT0400, the pair is trading at 1.3190, with the EUR trading marginally higher from Friday’s close.
The pair is expected to find support at 1.3141, and a fall through could take it to the next support level of 1.3093. The pair is expected to find its first resistance at 1.3242, and a rise through could take it to the next resistance level of 1.3295.
Today, investors are awaiting the outcome of a wide open Italian election that could trigger a risk averse trading situation and could renew concerns about the Euro if the polls bring an unstable government. Meanwhile, the conservative candidate, Nicos Anastasiades, won a double-digit victory in the Cyprus Presidential Election held on Sunday, ahead of crucial negotiations between the nation and international lenders over a bailout.
The currency pair is showing convergence with its 20 Hr moving average and is trading just below its 50 Hr moving average.
