EUR/USD: Euro reverses its losses in the Asian session

EUR/USD: Euro reverses its losses in the Asian session

EURUSD

EURUSD Movement

For the 24 hours to 23:00 GMT, the EUR declined 1.32% against the USD and closed at 1.1019.

On the macro front, Euro-zone’s ZEW economic sentiment indicator slumped to -49.5 in March, confounding market forecast for a rise to 35.4 and compared to a level of 10.4 in the previous month. In Germany, the ZEW current situation fell to -43.1 in March, more than market consensus for a drop to -30.0. In the previous month, the index had recorded a level of -15.7. Additionally, the ZEW economic sentiment indicator unexpectedly dropped to a level of -49.5 in March, compared to a level of 8.7 in the previous month.

In US, retail sales unexpectedly dropped 0.5% on a monthly basis in February, defying market forecast for a rise of 0.2% and compared to a revised rise of 0.6% in the prior month. Moreover, business inventories slid 0.1% in January, in line with market forecast and compared to revised flat reading in the prior month. Furthermore, the NAHB housing market index declined to a level of 72.0 in March, compared to a level of 74.0 in the previous month. Meanwhile, industrial production increased 0.6% on a monthly basis in February, compared to revised fall of 0.5% in the previous month. Additionally, the JOLTS job openings unexpectedly rose to 6.96 million in January, compared to a revised reading of 6.55 million in the earlier month.

In the Asian session, at GMT0400, the pair is trading at 1.1027, with the EUR trading 0.07% higher against the USD from yesterday’s close.

The pair is expected to find support at 1.0926, and a fall through could take it to the next support level of 1.0825. The pair is expected to find its first resistance at 1.1157, and a rise through could take it to the next resistance level of 1.1287.

  Daily Market Outlook, February 7, 2020 

Moving forward, traders would keep a watch on Euro-zone’s trade balance for January and the consumer price index for February, slated to release in a few hours. Additionally, the US MBA mortgage applications followed by building permits and housing starts, both for February, slated to release later today, would keep investors on their toes.

The currency pair is showing convergence with its 20 Hr average and trading below its 50 Hr moving average.

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