EURUSD Movement
For the 24 hours to 23:00 GMT, EUR declined marginally against the USD and closed at 1.3378 as a lacklustre US durable goods data fuelled fresh concerns over Fed stimulus measures. Sentiments were also hurt by the threat of a new government crisis in Italy, which could delay the country’s economic reform and dampen expectations that its economy can return to growth soon.
In the midst of rising tensions over the issue of the Troika potentially having to provide a third bailout package to Greece, the European Central Bank (ECB) governing council member, Jens Weidmann, urged Euro-zone governments not to depend on the central bank to solve their economic problems or to fix their fiscal woes. Meanwhile, the 23-member ECB Governing Council remained divided on whether further benchmark interest rate cuts could be warranted, as differing opinions emerged from the Jackson Hole Symposium over the weekend.
Separately, the US Treasury Secretary, Jacob Lew, stated that the US would hit debt ceiling of $16.7 trillion in mid-October and urged lawmakers to act soon to avoid a government default.
In the Asian session, at GMT0300, the pair is trading at 1.3374, with the EUR trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.3354, and a fall through could take it to the next support level of 1.3333. The pair is expected to find its first resistance at 1.3395, and a rise through could take it to the next resistance level of 1.3415.
Investors await report on German economy’s current assessment, business climate and expectations, which would provide insights about the current conditions and business expectations of the nation.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
