EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.64% against the USD and closed at 1.0679, after Germany’s seasonally adjusted industrial production unexpectedly dropped 3.0% on a monthly basis in December, declining by the most in eight-months, amid weakness in manufacturing and construction output. Industrial production recorded a revised gain of 0.5% in the preceding month, while markets expected a rise of 0.3%.
In the US, trade deficit narrowed more-than-expected to a level of $44.3 billion in December, buoyed by a sharp increase in the value of exports. Market participants anticipated the nation to post a deficit of $45.0 billion, compared to a revised deficit of $45.7 billion in the prior month. Meanwhile, the nation’s consumer credit rose less-than-anticipated by $14.2 billion in December, rising at the slowest pace in six months, after surging by a revised $25.2 billion in the previous month. Also, the nation’s IBD/TIPP economic optimism index advanced to a level of 56.4 in February, following a level of 55.6 in the previous month. On the other hand, the nation’s JOLTS job openings unexpectedly fell to a level of 5501.0K in December, following a revised reading of 5505.0K in the previous month and compared to market consensus for a rise to a level of 5569.0K.
In the Asian session, at GMT0400, the pair is trading at 1.0688, with the EUR trading 0.08% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.0653, and a fall through could take it to the next support level of 1.0617. The pair is expected to find its first resistance at 1.0724, and a rise through could take it to the next resistance level of 1.0759.
With no crucial economic releases in the Euro-zone today, investors will look forward to the US weekly mortgage applications data, scheduled to release later in the day.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
