EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined 0.67% against the USD and closed at 1.2775, amid renewed concerns about political uncertainty in Italy as the country’s Democratic Party leader ruled out the possibility of a broad coalition government.
Moreover, rise in Italian borrowing rates for five-year debt to a five-month high further added to the downward pressure.
In economic news, industrial confidence index in the Eurozone declined to a reading of -12.5 in March, from a downwardly revised level of -11.3 reported in February, while the economic sentiment indicator in the Euro-zone declined to a level of 90.0 in March. However, the consumer confidence index in the Euro-zone improved to a reading of -23.5 in March, in line with market expectations and unchanged from the previous month’s reading. Meanwhile, Germany’s Gfk consumer confidence stood unchanged for April, while France’s GDP shrank 0.3% in Q42012.
In the US, the seasonally adjusted monthly pending home sales index declined 0.4% to a reading of 104.8 in February, more than the market expectations of a 0.3% fall and from a downwardly revised rise of 3.8% recorded in January.
Additionally, the President of the Federal Reserve Bank (Fed) of Chicago, Charles Evans, opined that the central bank should continue with its monetary stimulus until the end of this year.
In the Asian session, at GMT0400, the pair is trading at 1.2784, with the EUR trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.2737, and a fall through could take it to the next support level of 1.269. The pair is expected to find its first resistance at 1.2844, and a rise through could take it to the next resistance level of 1.2904.
Trading trends in the pair today are expected to be determined by unemployment and retail sales data in Germany, and GDP and the initial jobless claims data in the US.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
