EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.60% against the USD and closed at 1.3519. The US Dollar gained ground against the Euro after minutes from the Fed’s latest policy meeting highlighted policymakers’ willingness to start tapering the size of the central bank’s stimulus package by the end of 2013 and end them by the mid of 2014. The minutes also highlighted officials’ concerns that the decision to delay the move could “undermine the credibility” of the Fed policies.
Elsewhere in the Europe, an official report showed that, on a seasonally adjusted basis, the industrial production in Germany rose 1.4% (MoM) in August, surpassing analysts’ call for a rise to 1.0% and compared to a 1.1% drop witnessed in the previous month. Separately, the European Central Bank (ECB) President, Mario Draghi, in his speech, explained the importance of integrating Euro-zone’s banking system and also highlighted its positive impact on the overall health of the economy. He also added that the changes taking place in the Euro-zone are making the region’s monetary union more robust.
In the Asian session, at GMT0300, the pair is trading at 1.3499, with the EUR trading 0.15% lower from yesterday’s close.
The pair is expected to find support at 1.3466, and a fall through could take it to the next support level of 1.3433. The pair is expected to find its first resistance at 1.3551, and a rise through could take it to the next resistance level of 1.3603.
Trading trends in the Euro is expected to be determined by ECB’s monthly report on the analysis of the prevailing economic situation and the risks to the economy’s price stability. Investors are also expected to keep an eye on ECB Chief, Mario Draghi’s speech, due later today.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
