EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR marginally declined against the USD and closed at 1.1080.
On the data front, Euro-zone’s final services PMI eased to a level of 51.9 in November, marking its lowest level in six-and-a-half years and less than market consensus and preliminary figures for a drop to a level of 51.5. In the prior month, the PMI had recorded a reading of 52.2.
Separately, in Germany, the final Markit services PMI unexpectedly rose to a level of 51.7 in November, defying market expectations and preliminary figures for of a decline to a level of 51.3. The PMI had registered a reading of 51.6 in the preceding month.
In the US, data showed that the ADP private sector employment growth increased at its slowest pace in six months by 67.0K in November, compared to a revised increase of 121.0K in the previous month. Moreover, the nation’s Markit services PMI rose to a level of 51.6 in November, in line with market expectations and confirming the preliminary print. In the prior month, the PMI had recorded a reading of 50.6.
On the contrary, the US ISM non-manufacturing PMI declined to a level of 53.9 in November, more than market anticipations for a drop to a level of 54.5. In the previous month, the PMI had recorded a level of 54.7. Also, the nation’s MBA mortgage applications plunged 9.2% in the week ended 29 November 2019, following a rise of 1.5% in the previous week.
In the Asian session, at GMT0400, the pair is trading at 1.1084, with the EUR trading a tad higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1062, and a fall through could take it to the next support level of 1.1040. The pair is expected to find its first resistance at 1.1111, and a rise through could take it to the next resistance level of 1.1138.
Looking forward, traders would await Euro-zone’s gross domestic product for 3Q 2019 and retail sales for October followed by Germany’s factory orders for October, set to release in a few hours. Later in the day, the US trade balance data and factory orders, both for October along with the initial jobless claims, will keep traders on their toes.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
