EURUSD Movement
On Friday, EUR rose 0.28% against the USD and closed at 1.3483. The US Dollar continued to face pressure from the Fed incoming Chief, Janet Yellen’s dovish comments on the central bank’s ultra-easy monetary policy, delivered before the Senate Banking Committee on Thursday. Negative sentiment for the greenback was also fuelled after a report showed that industrial production in the nation unexpectedly declined 0.1% (MoM) in October, compared to a 0.7% increase witnessed in the previous month.
Meanwhile, in the Euro-zone, an official report revealed that the region’s consumer price index rose 0.7% (YoY) in October, in line with market estimates and compared to a 1.1% increase registered in the previous month. Separately, the Euro-zone finance ministers congratulated Irish authorities for the successful implementation of the bailout programme and supported the Government’s decision to exit the European Union-International Monetary Fund bailout scheme without a precautionary credit line.
In the Asian session, at GMT0400, the pair is trading at 1.3490, with the EUR trading slightly higher from Friday’s close.
The pair is expected to find support at 1.3446, and a fall through could take it to the next support level of 1.3402. The pair is expected to find its first resistance at 1.3520, and a rise through could take it to the next resistance level of 1.3550.
Later today, the Eurostat is scheduled to release a report on the Euro-zone’s trade balance, which is widely expected to show that the region’s trade surplus rose during September.
The currency pair is trading just above its 20 Hr and 50 Hr moving averages.
