EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.07% against the USD and closed at 1.3672, as traders refrained from taking riskier bets amid lack of economic data from the Euro-zone.
In economic news, a report revealed that Germany’s producer price index rose 0.3% (MoM) in September, more than analysts’ expectation for a 0.1% rise, following a 0.1% drop registered in the previous month. Separately, another report showed that, on a seasonally adjusted basis, Italy’s industrial orders rose 2.0% (MoM) in August, while on a seasonally adjusted basis, industrial sales rose 1.0 (MoM) for the same month.
On the other hand, the US Dollar’s gains were capped after Chicago Fed President, Charles Evans indicated that the Fed might not begin tapering the size of its $85 billion monthly stimulus package for months, as a “US government shutdown has left the economic picture unclear”. Negative sentiment was also fuelled after a report showed that, on a monthly basis, existing home sales in the US declined to a level of 5.29 million in the month of September, more than analysts’ call for a fall to 5.37 million and compared to a reading of 5.48 million registered in the preceding month.
In the Asian session, at GMT0300, the pair is trading at 1.3666, with the EUR trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.3647, and a fall through could take it to the next support level of 1.3628. The pair is expected to find its first resistance at 1.3687, and a rise through could take it to the next resistance level of 1.3708.
Market participants are expected to keep a close watch on the release of the US employment data, for further direction in the pair.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
