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

 

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