EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.23% against the USD and closed at 1.2920, as investors risk sentiment improved, after two voting members of the Federal Open Market Committee (FOMC) eased concerns about the US central bank paring back its asset purchase program.
St. Louis Fed President, James Bullard stated that the low level of inflation will prevent the Fed from tapering the bond-buying program, while the New York Fed President, William Dudley opined the uncertain economic outlook makes it difficult to tell if the central bank increases or decreases the pace of asset purchases.
Moreover, the Bundesbank in its monthly report indicated that Germany avoided recession in the first quarter, citing a rise in private consumption. It further stated that it expects a further strengthening of economy in the second quarter amid a catch-up in construction and noticeable increase in industrial orders.
In the Asian session, at GMT0300, the pair is trading at 1.2920, with the EUR trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.2860, and a fall through could take it to the next support level of 1.2800. The pair is expected to find its first resistance at 1.2960, and a rise through could take it to the next resistance level of 1.3000.
Ahead in the day, apart from economic data release from the US and Europe, investor’s prime focus shall be on the Fed Chairman, Ben Bernanke’s testimony and the FOMC minutes for signs on the central bank’s intentions to reduce or increase its quantitative easing.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
