EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.4% against the USD and closed at 1.0415.
On the economic front, Italy’s consumer confidence index unexpectedly advanced to a level of 111.1 in December, notching its highest level in five months. The index registered a revised reading of 108.1 in the prior month, while defying market expectations for the index to ease to a level of 107.5.
Macroeconomic data indicated that pending home sales in the US surprisingly dropped 2.5% on a monthly basis in November, dropping to its lowest level in nearly a year, thus suggesting that rising interest rates could be weighing on the nation’s housing market. Pending home sales recorded a rise of 0.1% in the prior month, whereas markets were expecting pending home sales to rise 0.5%.
In the Asian session, at GMT0400, the pair is trading at 1.0440, with the EUR trading 0.24% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.0380, and a fall through could take it to the next support level of 1.0319. The pair is expected to find its first resistance at 1.0490, and a rise through could take it to the next resistance level of 1.0539.
Ahead in the day, investors will focus on the US advance goods trade balance and flash wholesale inventories data, both for November, along with weekly jobless claims, all due later in the day.
The currency pair is trading above its 20 Hr moving average and showing convergence with its 50 Hr moving average.
