EUR/USD treads water around 1.1300 ahead of German GDP

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 12, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    Having peaked near 1.1330 region earlier today, the EUR/USD pair reversed a brief dip below 1.13 handle and now wavers around the last, as the focus now remains on the crucial German Q4 GDP data.

    EUR/USD supported at hourly 50-SMA at 1.1293

    Currently, EUR/USD drops -0.17% at 1.1302, recovering from fresh session lows hit at 1.1293 in the last hour. The main currency pair garnered renewed strength near the hourly 50-SMA support and now regains 1.13 handle as markets now await the German growth numbers for the last quarter of 2015 for fresh impetus.

    German GDP is expected to come in at 1.7% growth y/y in Q4 2015, marginally decreasing from 1.8% booked previously. While the German GDP q/q is seen to remain unchanged, modestly growing by 0.3%.

    Besides, the German GDP, investors will also closely eye German CPI and Euro zone flash GDP as well as industrial production figures for fresh insights on the economic performance of the 19-nations bloc and also of its most powerful economy, Germany. Meanwhile, the sentiment on the European equities will also play a crucial role amid a data-filled European calendar.

    Moving on towards the NY session, there is significant economic news for the major, viz., the US retail sales. Import prices and prelim consumer sentiment data, which is likely to have considerable impact on the USD moves.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance at 1.1324/33 (1h 20-SMA/ daily high). A break beyond the last, doors will open for a test of 1.1400 (round number). On the flip side, the immediate support is placed at 1.1280/66 (5-DMA/ daily S1) below which at 1.1252/49 (psychological levels/ 1h 100-SMA) could be tested.
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