EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.16% against the USD and closed at 1.3336, as risk-appetite among investors declined ahead of Fed’s policy decision due later during the week.
In the Euro-zone, an official report showed that the region’s consumer price index stood at 1.3% (YoY) in August, at par with market expectation and compared to a 1.6% rise registered in the previous month. Meanwhile, the European Central Bank (ECB) Chief, Mario Draghi, in his speech, stated that the Euro-zone governments should do more to encourage investment in the region, in order to boost competitiveness.
Elsewhere, in the US, a report revealed that industrial production in the nation grew 0.4% (MoM) in August, in-line with market consensus and following a 0.0% growth seen in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.3332, with the EUR trading tad lower from yesterday’s close.
The pair is expected to find support at 1.3307, and a fall through could take it to the next support level of 1.3281. The pair is expected to find its first resistance at 1.3372, and a rise through could take it to the next resistance level of 1.3411.
Trading trends in the Euro is expected to be determined by ZEW survey on Euro-zone’s economic sentiment, which the market expects to show an improvement during the month of August. Separately, investors are also expected to keep a close watch on the release of the US’s consumer inflation data, later today.
The currency pair is trading just below its 20 Hr moving average and is showing convergence with its 50 Hr moving average.
