EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.30% against the USD and closed at 1.1321.
Data indicated that the Euro-zone’s ZEW economic sentiment index advanced to a level of -21.0 in December, compared to a reading of -22.0 in the prior month.
Separately, in Germany, the ZEW economic sentiment index unexpectedly rose to a level of -17.5 in December, defying market consensus for a drop to a level of -25.0. In the previous month, the index had registered a reading of -24.1. On the flipside, the ZEW current situation index fell to a level of 45.3 in December, compared to a reading of 58.2 in the previous month.
In the US, data showed that the US producer price index climbed 2.5% on a yearly basis in November, in line with market expectations. The index had registered a gain of 2.9% in the preceding month.
On the contrary, the nation’s NFIB small business optimism index declined to a level of 104.8 in November, more than market anticipation for a fall to a level of 107.0. The index had recorded a reading of 107.4 in the prior month.
In the Asian session, at GMT0400, the pair is trading at 1.1327, with the EUR trading 0.05% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1289, and a fall through could take it to the next support level of 1.1250. The pair is expected to find its first resistance at 1.1383, and a rise through could take it to the next resistance level of 1.1438.
Looking forward, investors would closely monitor the Euro-zone’s industrial production for October, set to release in a few hours. Later in the day, the US consumer price index and average weekly earnings, both for November along with the MBA mortgage applications, will garner significant amount of investors’ attention.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
