US data came out mixed as treasury yields came out low while GDP revision came better then expected beating -0.8 % forecast with -0.7 % actual result. Housing investments showed 5.0 % vs prior 1.3 % while US corp profits came out with -8.7 % vs -1.6 % previous reading.
Fundamentally GDP is the strongest release and it came better as we can see but technically the pair is trapped inside a bullish consolidation triangle. Standing close to resistance we can spot 2 important levels. 124.10 being a resistance and 123.60 being a support. Breakout of 124.10 and close above is needed for further up towards 124.45 and 124.90. If the pair manages to sustain bullish momentum we will see it.
If the pair doesn’t break 124.10 we could see a drop towards 123.60 where the breakout of 123.60 targets 123.40- trend line confluence and 122.95.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
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