EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR slightly declined against the USD and closed at 1.1164.
On the macro front, the Euro-zone’s flash consumer confidence index advanced to a 7-month high level of -6.5 in May, surpassing market consensus for a rise to a level of -7.7. The index had recorded a level of -7.9 in the previous month.
In the US, data showed that the existing home sales unexpectedly fell by 0.4% on monthly basis to a level of 5.19 million in April, compared to a level of 5.21 million in the prior month.
Separately, the Organization for Economic Cooperation and Development (OECD), in its latest report, trimmed its global growth forecast for 2019 to 3.2% from 3.3% estimated in March, citing the escalation in trade wars. The global outlook for 2020 was maintained at 3.4%. According to the report, the US economy is forecasted to grow 2.8% in 2019 before slowing to 2.3% in 2020. Growth in euro area is estimated at 1.2% this year and 1.4% for the next year. Moreover, Britain’s growth is forecasted to climb 1.2% in 2019 and 1.0% in 2020. Meanwhile, China’s growth is expected to ease to 6.2% in 2019 and to 6% in the next year. However, the agency warned that US and China’s growth would likely decline to 0.2%-0.3% on an average by 2021 and 2020 if they do not end the tariff war.
In the Asian session, at GMT0300, the pair is trading at 1.1161, with the EUR trading a tad lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1139, and a fall through could take it to the next support level of 1.1118. The pair is expected to find its first resistance at 1.1185, and a rise through could take it to the next resistance level of 1.1210.
Going forward, traders would await the European Central Bank President, Mario Draghi’s speech, due to release in a few hours. Later in the day, the US FOMC meeting minutes along with the MBA mortgage applications, will keep traders on their toes.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
