EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose marginally against the USD and closed at 1.3267. The greenback gave up ground against the Euro after the Secretary of State, John Kerry, confirmed that the US will explore Russia’s proposal for Syria to hand over its chemical weapons to international control. The demand for safe-haven currency also came under pressure following media reports that highlighted Syria’s acceptance of the Russian proposal to give up chemical weapons.
Meanwhile, in the Euro-zone, a report indicated that Italy’s GDP declined 2.1% (YoY) during the second quarter, more than analysts’ expectation for a 2.0% decline and compared to a similar drop registered in the previous quarter. Another report depicted that industrial output in France fell 0.6% (MoM) in July, defying market estimate for a rise to 0.6% and following a 1.4% decline registered in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.3262, with the EUR trading slightly lower from yesterday’s close. Earlier today, the US President, Barack Obama, in his speech from the White House, asked Congress to delay a vote authorizing the use of military force against Syria for allegedly using chemical weapons against its citizens. Meanwhile, the Syrian regime has reportedly accepted a Russian proposal to put its chemical weapons under international control to avoid a US military strike.
The pair is expected to find support at 1.3234, and a fall through could take it to the next support level of 1.3205. The pair is expected to find its first resistance at 1.3287, and a rise through could take it to the next resistance level of 1.3311.
Investors are expected to keep a close watch on German consumer inflation data and French nonfarm payrolls data, scheduled to release later during the day.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
