FXstreet.com (Córdoba) - Following the knee-jerk reaction to the US GDP data, which showed the US economy expanded 1.5% in Q2, the euro recovered to trade higher against the greenback as Hollande and Merkel joined the pledge to do whatever it takes to protect the euro zone.
Even though EUR/USD initially moved down after the data, it was contained by the 1.2270 area from where it quickly bounced back above the 1.2300 level to hit a fresh 3-week high of 1.2343. At time of writing, the pair is quoting at the 1.2325 zone, recording a 0.4% gain on Friday.
"With a break above 1.2340, expect the short covering to accelerate and drive the pair near 1.2410, while bearish trend will only resume on a breach below 1.2220 support putting sellers back in control sending the pair towards 1.2150 strong support zone", Valeria Bednarik, chief analyst at FXstreet.com commented. "Short term supports are 1.2300, 1.2280 and 1.2250 while resistances come at 1.2340 1.2380 and 1.2410".
Even though EUR/USD initially moved down after the data, it was contained by the 1.2270 area from where it quickly bounced back above the 1.2300 level to hit a fresh 3-week high of 1.2343. At time of writing, the pair is quoting at the 1.2325 zone, recording a 0.4% gain on Friday.
"With a break above 1.2340, expect the short covering to accelerate and drive the pair near 1.2410, while bearish trend will only resume on a breach below 1.2220 support putting sellers back in control sending the pair towards 1.2150 strong support zone", Valeria Bednarik, chief analyst at FXstreet.com commented. "Short term supports are 1.2300, 1.2280 and 1.2250 while resistances come at 1.2340 1.2380 and 1.2410".
