EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.35% against the USD and closed at 1.0426, as risk-appetite among traders increased after the preliminary reading of the Euro-zone’s consumer confidence index improved more-than-expected to a level of -5.1 in December, notching its highest level in twenty months, thus offering signs of brightening prospects in the common currency region. The index recorded a reading of -6.1 in the prior month, while investors had envisaged the index to rise to a level of -6.0.
Other macroeconomic data indicated that the US existing home sales unexpectedly jumped 0.7% on a monthly basis, to a nearly ten-year high level of 5.61 million in November, pointing to sustained strength in the nation’s housing sector. Existing home sales recorded a revised reading of 5.57 million in the prior month, while defying market expectation for a fall to a level of 5.50 million. Moreover, the nation’s MBA mortgage applications rebounded 2.5% in the week ended 16 December 2016, following a drop of 4.0% in the previous week.
In the Asian session, at GMT0400, the pair is trading at 1.0438, with the EUR trading 0.12% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.0399, and a fall through could take it to the next support level of 1.0360. The pair is expected to find its first resistance at 1.0464, and a rise through could take it to the next resistance level of 1.0490.
Ahead in the day, investors will look forward to the ECB’s economic bulletin report, the sole important release today. Additionally, a raft of economic releases in the US, consisting of annualised 3Q GDP growth, following flash durable goods orders, CB leading indicator, personal spending and income data, all for November along with weekly jobless claims and house price index for October, all slated to release later today, would pique significant amount of investor attention.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
