EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.35% against the USD and closed at 1.1261.
On the economic front, Germany’s seasonally adjusted final gross domestic product (GDP) rose by 0.4% in 2Q 2016, at par with market expectations and confirming the preliminary print. However, it represented a slowdown from the strong expansion of 0.7% in the first quarter.
Macroeconomic data released in the US indicated that, existing home sales eased more-than-expected by 3.2% on a monthly basis in July, compared to market expectations for a drop of 1.1% and following a gain of 1.1% in the prior month. Moreover, the nation’s MBA mortgage applications declined by 2.1% in the week ended 19 August 2016, compared to a drop of 4.0% in the previous week. Meanwhile, the nation’s housing price index advanced by 0.2% in June, lower than market expectations for a rise of 0.3% and after recording a 0.2% growth in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.1271, with the EUR trading 0.09% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1240, and a fall through could take it to the next support level of 1.1210. The pair is expected to find its first resistance at 1.1303, and a rise through could take it to the next resistance level of 1.1336.
Going forward, market participants would await the release of Germany’s Ifo surveys of business climate, current conditions and expectations in August, due in a few hours, to get better insights into the nation’s economic conditions. Additionally, in the US, durable goods orders, flash Markit services PMI and initial jobless claims data, all due later in the day, would garner significant amount of market attention.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
