EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.43% against the USD and closed at 1.1149.
On the data front, Euro-zone’s flash consumer price inflation accelerated to a 6-month high level of 1.3% on an annual basis in December, meeting market expectations. The inflation had recorded a rise of 1.0% in the prior month. Moreover, the nation’s seasonally adjusted retail sales increased for the first time in three months by 1.0% on a monthly basis in November, more than market anticipations and compared to a revised drop of 0.3% in the prior month.
The US dollar gained ground against major currencies, after US services sector activity grew at a faster than expected pace in December.
In the US, data showed that the ISM non-manufacturing PMI climbed to a level of 55.0 in December, beating market consensus for a rise to a level of 54.5. In the preceding month, the PMI had recorded a reading of 53.9. Additionally, factory orders fell 0.7% on a monthly basis in November, less than market anticipations for a fall of 0.8%. Factory orders had recorded a revised rise of 0.2% in the previous month. Moreover, trade deficit narrowed to $43.1 billion in November, more than market expectations and compared to a revised deficit of $46.9 billion in the previous month. On the other hand, the US durable goods orders declined 2.1% on a monthly basis in November. In the previous month, durable goods orders registered a revised rise of 0.2%.
In the Asian session, at GMT0400, the pair is trading at 1.1154, with the EUR trading marginally higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1127, and a fall through could take it to the next support level of 1.1101. The pair is expected to find its first resistance at 1.1187, and a rise through could take it to the next resistance level of 1.1221.
Looking forward, traders would await Euro-zone’s consumer confidence index, services sentiment, business climate indicator and economic sentiment indicator, all for December along with Germany’s factory orders for November, slated to release in a few hours. Later in the day, the US ADP employment change for December and consumer credit for November, along with the MBA mortgage applications, 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.
