EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.18% against the USD and closed at 1.3695.
In the US, the labour market showed strengthening signs after data indicated that initial jobless claims in the US declined to a seasonally adjusted 338,000, from revised 380,000 recorded in the prior week. Markets had expected initial jobless claims to fall to 345,000 during the week.
Meanwhile, data released on Tuesday indicated that mortgage applications in the US fell 6.3% for the week ended 20 December 2013, compared to a 5.5% decline recorded in the previous week. Furthermore, the US Census Bureau reported that durable goods orders in the US climbed 3.5% in November, compared to a revised 0.7% decline recorded in the previous month. Markets were expecting durable goods orders to rise 1.3% in November. Moreover, the Office of Federal Reserve Housing Enterprise Oversight reported that the seasonally adjusted housing price index rose 0.5% in October, in line with market estimates, following a revised rise of 0.2% in the previous month. However, new home sales declined 2.1% to seasonally adjusted annual rate of 464,000 units in November, compared to a revised rise of 17.6% and 474,000 units recorded in October. Separately, the Federal Reserve Bank of Richmond reported that composite index of manufacturing activity in the central Atlantic region in the US remained steady at a level of 13.0 in December compared to the previous month. Market had expected the index to rise to a level of 15.0 in December.
In the Asian session, at GMT0400, the pair is trading at 1.3736, with the EUR trading 0.30% higher from yesterday’s close.
The pair is expected to find support at 1.3689, and a fall through could take it to the next support level of 1.3641. The pair is expected to find its first resistance at 1.3765, and a rise through could take it to the next resistance level of 1.3793.
With a relatively light economic calendar in the US and the Euro-zone owing to the holiday season, trading trends would be determined by the global factors.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
