EURUSD Movement
On Friday, EUR rose 0.57% against the USD and closed at 1.3549, as the latest batch of strong economic data from Germany bolstered investors’ confidence in the recovery of the Euro-zone economy. Positive sentiment was also fuelled after the European Central Bank (ECB) President, Mario Draghi, highlighted the progress made by the banks in the Euro-zone area and called for an early introduction of ‘bail-in’ rules, in order to make creditors share the costs of winding up or rescuing Euro-zone’s banks.
In economic news, on a seasonally adjusted basis, Germany’s gross domestic product (GDP), on a non-seasonally adjusted basis, rose 1.1% in the third quarter, following a 0.9% rise recorded in the preceding quarter. Separately, the CESifo Group reported that its index on the current assessment of the German economy advanced to a level of 112.2 in November, more than analysts’ call for a rise to 111.6 and compared to a reading of 111.3 recorded in previous month. Similarly, the IFO business climate and the IFO expectations for the German economy rose more-than-expected to a reading of 109.3 and 106.3, respectively, in November, from a previous month’s level of 107.4 and 103.7.
In the Asian session, at GMT0400, the pair is trading at 1.3545, with the EUR trading marginally lower from Friday’s close.
The pair is expected to find support at 1.3484, and a fall through could take it to the next support level of 1.3424. The pair is expected to find its first resistance at 1.3583, and a rise through could take it to the next resistance level of 1.3622.
The ECB Governing Council Member, Christian Noyer, is expected to deliver a speech later today.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
