EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.41% against the USD and closed at 1.2944.
Earlier, the Euro came under pressure after Cyprus indicated it plans a one-time levy on bank deposits as part of a bailout deal with international lenders. The news unsettled investors as they speculated that this could lead to re-open contagion channels and whether concerns about Cypriot banks have spread to other peripheral nations. However, Jorg Asmussen, a German representative on the ECB’s Governing Council, calmed investors nerves who stated that the European Central Bank stands ready to provide support to any Euro-area banks through normal monetary operations and national central bank’s Emergency Liquidity Assistance (ELA).
The US Dollar came under pressure as the National Association of Home Builders (NAHB) reported that the seasonally adjusted housing market index dropped unexpectedly to a reading of 44.0 in March, from a reading of 46.0 in the previous month, marking the lowest level since October 2012.
In the Asian session, at GMT0400, the pair is trading at 1.2955, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.2893, and a fall through could take it to the next support level of 1.2830. The pair is expected to find its first resistance at 1.3007, and a rise through could take it to the next resistance level of 1.3058.
Later today, in the Euro-zone, construction output and the ZEW economic sentiment survey are slated for release, and so is Germany’s ZEW economic sentiment and current situation index. Moreover, investors eagerly await the outcome of the Cypriot government’s voting over the proposed levy. Meanwhile, in the US, the housing sector is hoped to mark some improvement in February as the housing starts and building permits data is awaited by investors.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
