EURUSD Movement
On Friday, EUR rose 0.08% against the USD and closed at 1.3679. The US Dollar gave up ground against the Euro amid speculation that the Fed might delay its plans to start tapering its $85 billion asset-purchase programme till March 2014. Speculation for a delay in Fed tapering plans birthed forth from Fed policymakers’ Thursday’s speech that indicated the central bank would refrain from tapering its stimulus package at its October policy meeting.
Negative sentiment was also fuelled after the Chicago Fed President, Charles Evans stated that the central bank’s loose monetary policies are not having a positive impact on the nation’s economic growth “in large part” due to fiscal austerity. He added that if the US government spending were exuberant, the economy would be growing more quickly.
In the Asian session, at GMT0300, the pair is trading at 1.3675, with the EUR trading slightly lower from Friday’s close.
The pair is expected to find support at 1.3656, and a fall through could take it to the next support level of 1.3636. The pair is expected to find its first resistance at 1.3700, and a rise through could take it to the next resistance level of 1.3724.
Investors are expected to keep a close watch on the release of Germany’ producer price index data and Italy’s industrial orders and sales data, due later today.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
