EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.16% against the USD and closed at 1.1092 on Friday.
On the macro front, Euro-zone’s seasonally adjusted trade surplus narrowed to €17.9 billion in June, more than market expectations for a surplus of €18.5 billion. The nation had posted a revised surplus of €19.6 billion in the previous month.
In the US, data showed that the preliminary Reuters/Michigan consumer sentiment index fell to a level of 92.1 in August, compared to a reading of 98.4 in the previous month. Market participants had anticipated the index to register a drop to a level of 97.0. Moreover, the US housing starts unexpectedly eased 4.0% on monthly basis to an annual rate of 1191.0K in July, defying market expectations for a reading of 1256.0 K. Housing starts had registered a revised level of 1241.0K in the previous month.
Meanwhile, the nation’s building permits jumped 8.4% on a monthly basis to an annual rate of 1336.0K in July, surpassing market consensus for a reading of 1270.0K. In the prior month, building permits had recorded a revised level of 1232.0K.
In the Asian session, at GMT0300, the pair is trading at 1.1094, with the EUR trading slightly higher against the USD from Friday’s close.
The pair is expected to find support at 1.1071, and a fall through could take it to the next support level of 1.1048. The pair is expected to find its first resistance at 1.1112, and a rise through could take it to the next resistance level of 1.1130.
Looking ahead, traders would closely monitor Euro-zone’s consumer price index for July, set 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.
