EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 1.32% against the USD and closed at 1.3656, as Greek Prime Minister’s decision to seek a referendum on the bailout package, raised concerns about the ability of the bailout fund to stem the debt crisis.
Greece Prime Minister George Papandreaou announced that the government would hold a referendum on accepting bailout funds from the European Union.
Meanwhile, Italian borrowing costs have continued rising to unsustainable levels amid fears that Silvio Berlusconi’s government would resist austerity measures.
In the Asian session, at GMT0400, the pair is trading at 1.3714, with the EUR trading 0.42% higher from yesterday’s close.
The pair is expected to find support at 1.3598, and a fall through could take it to the next support level of 1.3483. The pair is expected to find its first resistance at 1.3840, and a rise through could take it to the next resistance level of 1.3967.
Trading trends in the pair today are expected to be determined by manufacturing Purchasing Manager Index (PMI) in the Eurozone.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
