EURUSD Movement
On Friday, the EUR declined 0.79% against the USD and closed at 1.2005, reversing its previous session gains.
In economic news, Germany’s manufacturing PMI remained unchanged at a level of 51.2 in December, while markets expected it to register a similar reading. On the other hand, the Euro-zone’s manufacturing PMI surprisingly edged down to 50.6 in December, from 50.8 recorded in the preceding month.
Elsewhere, in France as well as in Italy, the manufacturing PMI deteriorated further in December and remained in contraction territory.
In the US, the ISM manufacturing activity index fell to a level of 55.5, lower than market expectations of a drop to 57.5. In the prior month, the index had registered a level of 58.7. Additionally, the nation’s final Markit manufacturing PMI recorded a drop to 53.9 in December. Market expectations were for the manufacturing PMI to ease to 54.0. Meanwhile, the ISM prices paid index dropped to 38.5 in December, compared to a level of 44.5 in the prior month.
In the Asian session, at GMT0400, the pair is trading at 1.1941, with the EUR trading 0.53% lower from Friday’s close.
The pair is expected to find support at 1.1848, and a fall through could take it to the next support level of 1.1756. The pair is expected to find its first resistance at 1.2052, and a rise through could take it to the next resistance level of 1.2163.
Trading trends in the Euro today are expected to be determined by Germany’s crucial CPI coupled with the Euro-zone’s Sentix investor confidence data, scheduled in a few hours.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
