EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose marginally against the USD and closed at 1.2101.
Yesterday, the ECB Chief, Mario Draghi indicated that the central bank was in technical preparations to amend the size, speed and compositions of its measures in early 2015, as the ECB was of the opinion that the risk of the central bank not achieving its mandate of preserving price stability was higher now than half a year ago.
In a noteworthy development, Lithuania became the 19th member to join the European currency bloc.
In economic news, the number of Americans filing for first-time unemployment benefits rose to 298,000 in the week ended 27 December, higher than market expectations of an advance to 287.00 K. Furthermore, the Chicago Fed purchasing managers index in the US fell to a level of 58.30 in December, compared to market expectations of a fall to 60.00. In the prior month, the Chicago Fed purchasing managers index had recorded a level of 60.80. Meanwhile, the pending home sales in the US rose 0.80% on a MoM basis in November, more than market expectations for an advance of 0.50%.
In the Asian session, at GMT0400, the pair is trading at 1.2059, with the EUR trading 0.35% lower from yesterday’s close.
The pair is expected to find support at 1.2035, and a fall through could take it to the next support level of 1.2011. The pair is expected to find its first resistance at 1.2096, and a rise through could take it to the next resistance level of 1.2133.
Trading trends in the pair today are expected to be determined by the release of manufacturing PMI numbers from the Euro bloc and the US.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
