For the 24 hours to 23:00 GMT, the EUR declined 0.34% against the USD and closed at 1.1367.

In economic news, Germany’s factory orders unexpectedly dropped 1.6% on a monthly basis in December, signalling further signs of economic slowdown and defying market consensus for a gain of 0.3%. In the preceding month, factory orders had recorded a revised fall of 0.2%.

In the US, data indicated that the US trade deficit narrowed to $49.3 billion in November, following a deficit of $55.5 billion in the previous month. Market participants had expected the nation to post a deficit of $54.0 billion. Moreover, the nation’s MBA mortgage applications fell 2.5% on a weekly basis in the week ended 01 February 2019, hitting its lowest level in 10 months and compared to a drop of 3.0% in the prior week.

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In the Asian session, at GMT0400, the pair is trading at 1.1359, with the EUR trading 0.07% lower against the USD from yesterday’s close.

The pair is expected to find support at 1.1345, and a fall through could take it to the next support level of 1.1330. The pair is expected to find its first resistance at 1.1388, and a rise through could take it to the next resistance level of 1.1416.

Going forward, traders would keep an eye on Germany’s industrial production for December, set to release in a while. Later in the day, the US consumer credit for December followed by initial jobless claims, will garner significant amount of investors’ attention.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

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