EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose marginally against the USD and closed at 1.2392, extending its Friday’s gains on the back of recent positive US economic data and hopes that policymaker would take action to help debt-market strugglers Spain and Italy.
In Germany, German Chancellor Angela Merkel’s spokesman Georg Streiter said her government would support the European Central Bank’s plan to buy debt from struggling euro-area countries.
Separately, a newspaper reported that French President, Francois Hollande is pressuring both Spain and Italy to request official aid, to help ease speculation among investors.
In economic news, the Sentix investor confidence in the Euro-zone fell to reading of -30.3 in August, its lowest level in over three years.
Yesterday, Standard & Poor’s affirmed the downgrading of 15 of Italy’s biggest banks, and has cut the ratings on 15 more lenders. It further warned that the Italy’s recession would be potentially deeper and more prolonged than previously thought.
In the Asian session, at GMT0300, the pair is trading at 1.2400, with the EUR trading 0.06% higher from yesterday’s close.
The pair is expected to find support at 1.2351, and a fall through could take it to the next support level of 1.2303. The pair is expected to find its first resistance at 1.2439, and a rise through could take it to the next resistance level of 1.2479.
Trading trends in the pair today are expected to be determined by the release of German factory orders and Italian Gross Domestic Product data.
The currency pair is trading just above its 20 Hr moving average and well above its 50 Hr moving average.
