EUR/USD: Euro Reverses Previous Session Gains

EUR/USD: Euro Reverses Previous Session Gains

For the 24 hours to 23:00 GMT, EUR rose marginally against the USD and closed at 1.2861, though concerns remained that the banking solution in Cyprus could be a model used in other economically challenged European nations.

Meanwhile, investor sentiment further deteriorated after the rating agency, Standard & Poor’s indicated that it expects the region’s gross domestic product to shrink in 2013 and recover marginally in 2014.

In economic front, consumer confidence index in France dropped to a reading of 84.0 in March, following a reading of 86.0 in February.

In the US, new home sales climbed 411,000 in February, following a revised 431,000 rise in the previous month. Also, the Standard & Poor’s/Case Shiller composite 20 house price index rose to an annualized rate of 8.1% in January, from a rate of 6.8% the previous month, beating expectations for a rise to 7.9%. However, the Conference Board indicated that its index of consumer sentiment fell unexpectedly to a reading of 59.7 in March, from a revised reading of 68.0 the previous month.

In the Asian session, at GMT0400, the pair is trading at 1.2842, with the EUR trading 0.15% lower from yesterday’s close.

The pair is expected to find support at 1.2816, and a fall through could take it to the next support level of 1.2791. The pair is expected to find its first resistance at 1.2879, and a rise through could take it to the next resistance level of 1.2917.

The Euro-zone is slated to release its preliminary data on consumer inflation, which accounts for a majority of overall inflation, while Germany’s Gfk consumer confidence survey and the French GDP are also due later today.