EUR/USD: Euro Extending Its Friday's Gains

EUR/USD: Euro Extending Its Friday's Gains

For the 24 hours to 23:00 GMT on Friday, EUR rose 0.53% against the USD and closed at 1.3343. The Euro on Friday catapulted to its highest level against the Dollar since April 2012, a day after the European Central Bank, Chief Mario Draghi set a bullish tone by not giving any indication the bank would ease monetary policy.

On the economic front, on a calendar adjusted annual basis, industrial production in Spain slipped 7.2% (YoY) in November, following a 3.1% drop recorded in October, whereas in France, the current account deficit remained unchanged at €2.9 billion in November.

Meanwhile, the US Dollar came under pressure, after the US trade deficit widened in November. The budget deficit in the US narrowed to $260.0 million in December, compared to a deficit of $86.0 billion recorded during the same period last year, while trade deficit widened to $48.7 billion in November, from a revised $42.1 billion deficit in October.

In the Asian session, at GMT0400, the pair is trading at 1.3392, with the EUR trading 0.37% higher from Friday's close, as traders expected that Ben Bernanke's speech due today evening would dispel the doubts raised on easing by FOMC minutes released recently.

The pair is expected to find support at 1.3292, and a fall through could take it to the next support level of 1.3192. The pair is expected to find its first resistance at 1.3448, and a rise through could take it to the next resistance level of 1.3504.

Trading trends in the pair today would also take cues from industrial production data due to be released in the Euro-zone.