EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR marginally declined against the USD and closed at 1.2260, after few members of the center-left Social Democrats (SPD) voted against opening coalition talks with German Chancellor, Angela Merkel’s conservative, thus throwing German politics back into a state of uncertainty and disarray.
On the macro front, Germany’s final consumer price index (CPI) rose 1.7% on an annual basis in December, confirming the preliminary print. In the prior month, the CPI had risen 1.8%.
Macroeconomic data released in the US indicated that the New York Empire State manufacturing index eased more-than-anticipated to a level of 17.7 in January, declining for the third straight month. The index had recorded a revised reading of 19.6 in the previous month, while markets had expected for a fall to a level of 19.0.
In the Asian session, at GMT0400, the pair is trading at 1.2268, with the EUR trading 0.07% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.2201, and a fall through could take it to the next support level of 1.2134. The pair is expected to find its first resistance at 1.2329, and a rise through could take it to the next resistance level of 1.2390.
Going ahead, traders would focus on the Euro-zone’s final inflation data for December, scheduled to release in a few hours. Later in the day, the release of US industrial and manufacturing production figures for December, the NAHB housing market index for January and the Federal Reserve’s Beige Book report, will keep investors on their toes.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
