EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.36% against the USD and closed at 1.0811 on Friday.
On the data front, Euro-zone’s Markit services PMI plunged to a level of 26.4 in March, compared to a reading of 56.6 in the previous month. The preliminary figures had indicated a drop to 28.4. On the other hand, retail sales advanced 0.9% on a monthly basis in February, compared to a revised advance of 0.7% in the prior month. Markets participants were expecting retail sales to rise 0.1%. Separately, Germany’s Markit services PMI dropped to a level of 31.7 in March, compared to a reading of 52.5 in the earlier month. The preliminary figures had indicated a fall to 34.5.
In the US, nonfarm payrolls plunged by 701.0K in March, more than market expectations of a decline of 100.0K jobs. In the previous month, nonfarm payrolls had recorded a revised rise of 275.0K. Additionally, the Markit services PMI eased to a level of 39.8 in March, compared to a reading of 49.4 in the previous month. The preliminary figures had indicated a drop to 39.1. Moreover, the nation’s unemployment rate climbed to 4.4% in March, more than market forecast for a rise to 3.8%. In the prior month, the unemployment rate stood at 3.5%. Meanwhile, the ISM non-manufacturing PMI fell to a level of 52.5 in March, less than market anticipations for a drop of 44.0 and compared to a reading of 57.3 in the earlier month. Additionally, average hourly earnings rose 3.1% on a yearly basis in March, surpassing market expectations for an advance of 3.0% and compared to a rise of 3.0% in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.0813, with the EUR trading marginally higher against the USD from Friday’s close.
The pair is expected to find support at 1.0772, and a fall through could take it to the next support level of 1.0732. The pair is expected to find its first resistance at 1.0854, and a rise through could take it to the next resistance level of 1.0896.
Looking forward, traders would keep a watch on Euro-zone’s Sentix investor confidence for April and Germany’s factory orders for February, slated to release in a few hours.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
