EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.37% against the USD and closed at 1.1108.
On the data front, Euro-zone’s final consumer confidence index declined to a level of -8.1 in December, meeting market expectations and confirming the preliminary figures. In the prior month, the index had recorded a level of -7.2. Moreover, the business climate indicator unexpectedly dropped to -0.25 in December, defying market consensus for a rise to a level of -0.16. In the preceding month, the indicator had recorded a revised reading of -0.21. On the other hand, the region’s economic sentiment indicator climbed to a level of 101.5 in December, hitting its highest level in 3 months and more than market expectations for a rise to a level of 101.4. The indicator had registered a revised reading of 101.2 in the prior month.
Separately, in Germany, seasonally adjusted factory orders unexpectedly declined 1.3% on a monthly basis in November, defying market expectations for a rise of 0.1%. In the prior month, factory orders had registered a revised rise of 0.2%.
In the US, data showed that the ADP private sector employment advanced by 202.0K in December, hitting an 8-month high level and surpassing market consensus for a rise of 160.0K. In the prior month, the private sector employment recorded a revised level of 124.0K. Further, the nation’s that consumer credit rose by $12.51 billion in November, compared to a revised rise of $18.98 billion in the previous month. Market participants had envisaged the consumer credit to register an increase of $16.7 billion. Likewise, the US MBA mortgage applications climbed 13.5% in the week ended 27 December 2019, following a drop of 5.3% in the prior week.
In the Asian session, at GMT0400, the pair is trading at 1.1115, with the EUR trading 0.06% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1092, and a fall through could take it to the next support level of 1.1068. The pair is expected to find its first resistance at 1.1149, and a rise through could take it to the next resistance level of 1.1182.
Going forward, traders would keep an eye on Euro-zone’s unemployment rate for November along with Germany’s trade balance data and industrial production, both for November, slated to release in a few hours. Later in the day, the US initial jobless claims, will be on investors’ radar.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
