EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.27% against the USD and closed at 1.3521. The US Dollar gained ground on speculation that the US lawmakers would agree on a deal to end the nation’s fiscal impasse before the October 17th deadline. However, the gains were kept in check after Fitch Ratings placed the nation’s ‘AAA’ credit grade on rating watch negative, citing concerns over the looming deadline to increase the US debt limit. The greenback also faced some pressure from Fed Dallas President, Richard Fisher’s comments that the Fed might not scale back its bond purchases programme at its policy meeting on October 29-30. He also highlighted the possibility for the US economic data to be “sloppy” for a couple more months due to the partial government shutdown.
Elsewhere, in the Euro-zone, a report showed that the ZEW survey on the region’s economic sentiment came in at a reading of 59.1 in October, less than market expectation for a rise to 59.4 and compared to a level of 58.6 witnessed in the previous month. Meanwhile, Germany’s ZEW survey on economic sentiment surpassed market expectation and surged to a level of 52.8 in the month of October, following a level of 49.6 registered in the preceding month.
In the Asian session, at GMT0300, the pair is trading at 1.3512, with the EUR trading 0.07% lower from yesterday’s close.
The pair is expected to find support at 1.3470, and a fall through could take it to the next support level of 1.3428. The pair is expected to find its first resistance at 1.3563, and a rise through could take it to the next resistance level of 1.3614.
Traders would focus on Euro-zone’s consumer price index data to be released ahead in the day. Market participants are also expected to keep a tab on the European Central Bank (ECB) President, Mario Draghi’s speech, expected to commence later during the day.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
