EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.57% against the USD and closed at 1.0808.
On the macro front, Euro-zone’s Markit manufacturing PMI dropped to a 92-month low level of 44.8 in March, less than market anticipations for a drop to a level of 39.0 and compared to a level of 49.2 in the previous month. Meanwhile, the preliminary services PMI plunged to 28.4 in March, more than market forecast for a drop to a level of 39.0 and compared to a reading of 52.6 in the prior month. Separately, in Germany, the preliminary Markit manufacturing PMI declined less-than-expected to 45.7 in March, compared to a level of 48.0 in the prior month. On the contrary, the flash Markit services PMI declined to a level of 34.5 in March, more than market forecast for a fall to a level of 42.3 and compared to a reading of 52.5 in the earlier month.
In the US, the preliminary Markit manufacturing PMI decreased to 49.2 in March, undershooting market consensus for a decline to a level of 43.0 and compared to a level of 50.7 in the earlier month. Moreover, new home sales slid 4.4% on a monthly basis to an annual rate of 0.77 million in February, less than market expectations for a reading of 0.75 million and compared to revised level of 0.80 million in the previous month. On the flipside, the Markit services PMI declined to 39.1 in March, more than market expectations for a drop to 42.0. In the previous month, the PMI had recorded a reading of 49.4. Additionally, the Richmond Fed manufacturing index rose to 2.0 in March, less than market consensus for a rise to level of 9.0 and compared to a reading of -2.0 in the prior month.
In the Asian session, at GMT0400, the pair is trading at 1.0809, with the EUR trading marginally higher against the USD from yesterday’s close.
The pair is expected to find support at 1.0741, and a fall through could take it to the next support level of 1.0672. The pair is expected to find its first resistance at 1.0883, and a rise through could take it to the next resistance level of 1.0956.
Moving ahead, investors would keep an eye on Germany’s Ifo survey indices for March, slated to release in few hours. Later in the day, US durable goods orders and factory orders, both for February along with the housing price index for January and the MBA mortgage applications, would keep investors on their toes.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
