COZforex: For the past trading session, the EUR rise 0.12% against the USD and closed at 1.2953, after the ZEW economic sentiment index in Germany, Euro-zone’s biggest economy, dropped lesser than expected to 6.9 in September, compared to market expectations of a decline to a level of 5.0 and following previous month’s level of 8.6. The German ZEW Survey for the current situation also came in below expectations at 25.4 in September. Meanwhile, the Euro-zone’s economic sentiment further deteriorated to 14.2 in September, lower than market expectations of a drop to a level of 21.3 and compared to a level of 23.7 in August. In addition, the region’s labour cost advanced 1.2% on an annual basis in 2Q 2014, compared to 0.6% increase in the previous quarter.

In the US, the producer price index registered a rise of 1.8%, on an annual basis, in August, in line with market expectations and compared to a rise of 1.7% in the prior month. Additionally, the Redbook sales index in the nation rose 3.6%, on an annual basis, for the week ended 12 September, following a rise of 4.9% in the prior week. Meanwhile, total net TIC inflow in the US stood at $57.7 billion in July, compared to a revised outflow of $142.0 billion reported in the previous month.

In technical analysis, COZFX strategist Nigel Boynton said, EUR/USD is predicted to find support at 1.2919 and a fall through could take it to the next support line of 1.2883. Meanwhile, the pair is predicted to find its first resistance at 1.2993, and a rise through could take it to the next resistance line of 1.3031.

Trading trends in the Euro today are expected to be determined by the Euro-zone’s CPI data, scheduled in a few hours. Meanwhile, investors would keep a close eye on inflation data from the US before the Fed’s interest rate decision, scheduled later in the day.

(COZ forex UK)