EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.57% against the USD and closed at 1.3168. The greenback came under pressure as purchasing managers’ index (PMI) of Chicago region dropped to 49.0 in April, as compared to a level of 52.4 recorded in the previous month. However, losses were capped as the S&P/Case-Shiller composite home price index of 20 metropolitan areas of the US rose 9.32% in February, to a level of 146.57, while NAPM-Milwaukee manufacturing index fell to a reading of 48.4 in April. Also, the consumer confidence index rose to a reading of 68.1 in April.
However, gains in the Euro were capped as the Euro-zone unemployment rate hit record high of 12.1% in March, thereby raising speculation that the ECB may take action and lower interest rates later this week. Meanwhile in Germany the unemployment rate stood at 6.9% in April, with the number of people unemployed rising by 4K in April. Also, gross domestic product in Spain fell 0.5% in the Q12013.
In the Asian session, at GMT0300, the pair is trading at 1.3163, with the EUR trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.3082, and a fall through could take it to the next support level of 1.3002. The pair is expected to find its first resistance at 1.3215, and a rise through could take it to the next resistance level of 1.3268.
Major European market are closed today on account of Labour day holiday. Whereas, in the US, amidst a flurry of economic releases such as ISM manufacturing PMI, construction spending and ADP employment change, investor eagerly await the Fed’s interest rate decision due later today.
The currency pair is trading above its 20 Hr and 50 Hr moving averages .
