EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.70% against the USD and closed at 1.0986.
In economic news, Germany’s GfK consumer confidence index remained flat at a level of 10.10 in August, at par with market expectations, highlighting that the consumers remained optimistic about the Euro-zone’s biggest economy.
The greenback gained ground, after the FOMC in its monthly monetary statement revealed that the US central bank was marching towards a first interest rate hike since 2006, as the policymakers indicated that the US economic condition and the labour market was improving. Meanwhile, the Fed voted to keep the benchmark short-term rate near zero, as expected.
In other economic news, pending homes sales in the US unexpectedly retreated 1.8% MoM in June, compared to a revised increase of 0.6% in the previous month. Markets were expecting it to advance 0.9% in June.
In the Asian session, at GMT0300, the pair is trading at 1.0979, with the EUR trading 0.07% lower from yesterday’s close.
The pair is expected to find support at 1.0931, and a fall through could take it to the next support level of 1.0883. The pair is expected to find its first resistance at 1.1056, and a rise through could take it to the next resistance level of 1.1132.
Trading trends in the Euro today are expected to be determined by Germany’s inflation as well as employment data, scheduled in a few hours. Additionally, the preliminary estimate of the US annualized Q2 GDP data, scheduled later today would grab significant amount of market attention.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
