Trading EUR/USD ahead of European GDP news
|The Euro (EUR) plunged against the U.S. Dollar (USD) on July 28, 2021, decreasing the price of the EURUSD pair to less than 1.1900, ahead of the release of the European Gross Domestic Product (GDP) news. The technical bias remains bearish since the pair printed a lower low in the recent downside move.
Technical analysis
As of this writing, the EURUSD pair hovers around 1.1804. Should the price keeps decreasing, the pair might find some support near the given price levels.
Short-term support
1.1770 - the low of July 27, 2021.
1.1730 - the lower trendline arm.
1.1702 - the major horizontal support .
On the upside, the EURUSD pair might face some resistance near the listed price levels.
Short-term resistance
1.1841 - the high of July 27, 2021.
1.1918 - the Fibonacci retracement (61.8%).
1.1941 - the horizontal resistance level.
European Gross Domestic Product news
Statistisches Bundesamt Deutschland anticipates releasing numbers for the European Gross Domestic Product news on July 30, 2021. As per the second estimate of economists, the European GDP data registered a reading of 2% in the second quarter this year, as compared to the reading of -1.8%, in the quarter before.
European GDP stats reflects the monetary value of products and services produced within the country over the given period. Not to mention, the GDP stats also reveal the pace at which the country's economy progresses or deteriorates. Generally speaking, better than expected numbers amid GDP data strengthens the European economy and suggests a bullish trend for the EURUSD and vice versa.
Conclusion
Considering the price movements of the pair over the past few days, it may be a better option in the short term if the EURUSD pair was sold at around 1.1841. Due to the volatile nature of the market, however, prices may change and lead to different outcomes.
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