EURUSD Movement
On Friday, EUR declined 0.65% against the USD and closed at 1.3492, amid lingering speculation that the latest batch of lacklustre economic data from the Euro-zone might compel the European Central Bank (ECB) to initiate more easing measures.
Meanwhile, the US Dollar strengthened against the Euro after a report revealed that the US ISM manufacturing PMI rose to a reading of 56.4 in October, defying analysts’ call for a drop to 55.0 from a level of 56.2 seen in the previous month. The US Dollar also gained some support from Richmond Fed President, Jeffrey Lacker’s optimistic comments that the US labour market has recovered enough in the last 14 months to allow the central bank to reduce its bond-buying stimulus. Additionally, St. Louis Fed President, James Bullard’s also hinted that a progress in the US labour market might warrant a cut in the central bank’s $85 billion monthly stimulus package.
In the Asian session, at GMT0400, the pair is trading at 1.3481, with the EUR trading 0.08% lower from Friday’s close.
The pair is expected to find support at 1.3426, and a fall through could take it to the next support level of 1.3370. The pair is expected to find its first resistance at 1.3552, and a rise through could take it to the next resistance level of 1.3622.
Investors await the release of Euro-zone’s Markit manufacturing PMI data and a report on Sentix investor confidence in the region, due later today, to gauge ECB’s further action.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
