EUR/USD Forecast: 1.1800 next stop
|- EUR/USD breaks to the upside, indicating more gains are likely today.
- Solid German growth boosts the common currency, more macro news ahead.
The EUR/USD pair broke higher and trades above 1.1700 for the first time since October 26th, as German Q3 figures surprised to the upside. Economic growth accelerated in the third quarter of the year according to preliminary estimates, up by 0.8% against market's expectations of 0.6%. October inflation, however, came in as expected, and unchanged from September final figures. Still pending of release are the ZEW survey and the EU preliminary Q3 GDP. ECB's Draghi is due to participate in a discussion panel on central bank communications, hardly expected to say something on monetary policy. As for the US, the world's largest economy will release its October PPI figures.
The pair holds near its recently achieved high of 1.1719 and seems poised to extend its advance according to technical readings in the 4 hours chart, as indicators picked up, heading north within overbought territory and at their highest for this month. In the same chart, the 20 SMA is about to cross above the 100 SMA, both now around 1.1650 and acting as support, while the 200 SMA comes at 1.1720, reinforcing the static resistance level. Beyond this last, the next resistance comes at 1.1750, en route to the 1.1800 figure, where selling interest will probably reject the advance. Supports from the current level are located at 1.1660/70 and 1.1620.
View live chart of the EUR/USD
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.