COZforex: On Friday, EUR rise 0.28% against the USD and closed at 1.3904.

The greenback dropped against the Euro-zone’s common currency after the Thomson Reuters/University of Michigan preliminary index on the US consumer confidence declined to a 4 months low reading of 79.9 in March, defying market expectations for the index to advance to a reading of 82.0, from previous month’s level of 81.6. Separately, the US producer price index rise less-than-expected 0.9% in February, failing to meet analysts’ estimate for a 1.2% rise.

In the Euro-zone, the Eurostat reported that employment change rise to 0.1% in the fourth-quarter, compared to a flat reading registered in the preceding quarter. Another report from Germany, confirmed that consumer price index in the nation rise 1.2% in February, in-line with market estimates and following a 1.3% increase recorded in the previous month.

In a noteworthy event, Moody’s Investors Service upgraded its rating outlook on the European Union to “Stable” from “Negative”, citing improvement in its member nation’s finances and diminishing risks from the Euro-zone debt crisis.

In technical analysis, COZFX strategist Nigel Boynton said, EUR/USD is predicted to find support at 1.3855 and a drop through could take it to the next support line of 1.3806. Meanwhile, the pair is predicted to find its first resistance at 1.3945, and a rise through could take it to the next resistance line of 1.3986.

Traders keenly await the Euro-zone’s consumer inflation data, due later today, for further cues in the Euro.

Market participants are also expected to keep a tab on the Bundesbank President, Jens Weidmann’s speech, expected to commence later today.

(COZ forex UK)