EURUSD Movement
On Friday, EUR rose 0.20% against the USD and closed at 1.3554, as investors reacted positively to German consumer inflation data, which came in at par with market expectation. Data showed that Germany’s consumer price index stood at 0.0% (MoM) in September, in line with market expectation and compared to a similar reading recorded in the preceding month.
Meanwhile, the US Dollar came under pressure after Federal Open Market Committee (FOMC) Member, Jerome Powell, stated that he supported Fed’s last month decision to refrain from tapering the size of its $85 billion monthly asset purchase programme, as a reasonable exercise in risk management. He also added that the central bank’s decision acts as a buffer against the risks of fiscal gridlock in Washington and an economic slowdown.
On the economic front, a report in the US showed that the preliminary reading of the Reuters/Michigan consumer sentiment index declined to a level of 75.2 in October, more than analysts’ call for a drop to 76.0 from a reading of 77.5 registered in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.3564, with the EUR trading 0.07% higher from Friday’s close.
The pair is expected to find support at 1.3530, and a fall through could take it to the next support level of 1.3497. The pair is expected to find its first resistance at 1.3590, and a rise through could take it to the next resistance level of 1.3617.
Investors await the release of Euro-zone’s industrial production data, due later today, for further direction in the Euro.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
