EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.60% against the USD and closed at 1.2842.
In the Euro-zone, economic data indicated that, current account surplus increased to a seasonally adjusted €25.9 billion in March, from a revised €14.6 billion surplus recorded in the previous month.
However, lack of key economic data from the Euro-zone, left markets watching the US for direction.
The Federal Reserve Chairman, Ben Bernanke in his testimony before the Joint Economic Committee (JEC) stated that, the central bank would consider tapering bond-buying programme if the economy shows signs of recovery. However, he expressed caution that cutting back the monetary easing too soon would harm the nation’s economy.
However, the Federal Open Market Committee (FOMC) minutes for April/May meeting, released after Chairman Ben Bernanke testimony, triggered uncertainty among investors, with several policy makers pushing to taper asset purchases as early in June’s meeting.
In economic news, existing home sales in the US rose 0.6% to a seasonally adjusted annual rate of 4.97 million in April, as compared to an upwardly revised 4.94 million annual rate recorded in March. Market had expected existing home sales to increase to 4.99 million in April.
In the Asian session, at GMT0300, the pair is trading at 1.2849, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.2782, and a fall through could take it to the next support level of 1.2714. The pair is expected to find its first resistance at 1.2958, and a rise through could take it to the next resistance level of 1.3066.
Markit manufacturing data from France, Germany and the Euro-zone is scheduled to release later in the day. Also the US weekly jobless claims data is set to release today. An improvement in the jobs market might influence Fed’s stance whether to maintain or withdraw the bond-buying programme.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
