EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.41% against the USD and closed at 1.1334, following disappointing IFO economic data in Germany.
Data showed that Germany’s IFO business expectations index unexpectedly fell to a level of 102.5 in February, against market expectations of a rise to 103.0 and compared to prior month’s level of 102.0. Additionally, the nation’s IFO business climate index registered a reading of 106.8 in February, lower than market forecasts to advance to 107.70.
Separately, the ECB announced that its buying of covered bonds expanded by €2.785 billion to €48.739 billion.
In the US, existing home sales retreated more than expected by 4.9% MoM, posting a 9-month low in January and compared to previous month’s rise of 2.4%. Markets were expecting it to drop 1.8%. Meanwhile, the Chicago Fed national activity index edged up to 0.13 in January, higher than market expectations of a rise to 0.05. The index had registered a revised level of -0.07 in the prior month.
In the Asian session, at GMT0400, the pair is trading at 1.1333, with the EUR trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.1290, and a fall through could take it to the next support level of 1.1247. The pair is expected to find its first resistance at 1.1381, and a rise through could take it to the next resistance level of 1.1429.
Trading trends in the Euro today are expected to be determined by Germany’s 4Q GDP coupled with the Euro-zone’s CPI data, scheduled in a few hours. Additionally, market participants will keep an eye on the Fed Chairperson, Janet Yellen’s testimony to the Senate Banking Committee, scheduled later today for indications on the timing of an interest rate rise in the US.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
