EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.26% against the USD and closed at 1.1197.
On the macro front, Euro-zone’s final services PMI advanced to a 4-month high level of 52.8 in December, more than market expectations and preliminary figures for a rise to a level of 52.4. In the previous month, the PMI had registered a reading of 51.9. Moreover, the Sentix investor confidence index unexpectedly climbed to a level of 7.6 in January, notching its highest level since November 2018 and defying market anticipations for a drop to a level of -4.9. In the previous month, the index had registered a level of 0.7. On the other hand, the nation’s producer price index (PPI) fell 1.4% on an annual basis in November, less than market consensus for a decline of 1.6%. The PPI had registered a drop of 1.9% in the prior month.
Separately, in Germany, the final services PMI increased to a level of 52.9 in December, surpassing market expectations and preliminary figures for an advance to a level of 52.0. In the previous month, the PMI had recorded a level of 51.7. Further, the nation’s retail sales advanced 2.1% on a monthly basis in November. In the preceding month, retail sales had recorded a drop of 1.9%.
In the US, data showed that the final Markit services PMI climbed to a level of 52.8 in December, surpassing market expectations and preliminary figures for a rise to a level of 52.2. The PMI had registered a level of 51.6 in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.1192, with the EUR trading a tad lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1164, and a fall through could take it to the next support level of 1.1136. The pair is expected to find its first resistance at 1.1213, and a rise through could take it to the next resistance level of 1.1234.
Going ahead, traders would await Euro-zone’s consumer price index for December and retail sales for November, set to release in a few hours. Later in the day, the US ISM non-manufacturing PMI for December and factory orders for November, will keep traders on their toes.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
