EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose marginally against the USD and closed at 1.2767, as robust housing data in the US increased investor risk appetite. Earlier, in the European trading hours, the Euro was in demand amid signs of a deal being reached to tackle the US fiscal cliff and optimism that EU leaders were closer to a resolution on Greece.
In the US, the NAHB/Wells Fargo housing market index jumped to 46.0 in November, from 41.0 in October. Meanwhile, the NAR existing home sales rose 2.1% to a seasonally adjusted annual rate of 4.79 million in October, compared to a downwardly revised 4.69 million in September.
However, late yesterday, Moody’s Investors Service lowered its sovereign rating on France by one level to ‘Aa1′ from ‘AAA’ and maintained its “Negative” outlook.
Additionally, Moody’s also warned that the outlook for Italy’s banking sector remains negative, citing rapid asset quality deterioration and limited access to market funding.
On the economic front, Euro-zone’s construction output fell 1.4% (MoM) in September, following a revised 0.6% rise in August. Meanwhile, on a seasonally adjusted monthly basis, Italian industrial new orders declined 4.0% in September, compared to a revised 0.6% rise in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.2797, with the EUR trading 0.23% higher from yesterday’s close.
The pair is expected to find support at 1.2759, and a fall through could take it to the next support level of 1.2722. The pair is expected to find its first resistance at 1.2827, and a rise through could take it to the next resistance level of 1.2858.
Trading trends in the pair today are expected to be determined by release of the University of Michigan Confidence survey and the leading indicators data to be released later today. Additionally, the Euro-zone finance ministers would hold talks in Brussels to discuss financial issues in the bloc. Meanwhile, Germany is to release official data on producer price inflation.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
