The EUR/USD pair extends its advance this Friday up to 1.0972, as the market awaits for US GDP data. The second revision of the first quarter GDP annualized reading is expected at -0.8% from a previous 0.2%, and market is already pricing in a worse that first estimated number. The US economy has tumbled during the first three months of this 2015, sending investors away from the greenback; but a higher inflation reading earlier this month, followed by a FED's chair Janet Yellen statement reaffirming her intentions of rising rates this year, has have the American currency a boost across the board.
Investors however, are now considering that maybe they moved too fast towards the greenback on hopes of a rate hike, as if the reading comes actually negative, the rate hike will again be delayed, giving the EUR room to recover further.
Technically, the 4 hours chart shows that the technical readings are biased higher, with the price above its 20 SMA and the technical indicators head north above their mid-lines. The immediate resistance comes now at 1.1000, with a break above it probably signaling a quick spike up to the 1.1050 region. If the price extends beyond this last, the pair will likely close the week near 1.1100. On the other hand, the immediate support comes at 1.0940/50, with a better-than-expected reading favoring a break below it, towards 1.0890/1.0900. Should the price extend below this last, 1.0850 is next, in route to the weekly low around 1.0820.
View live chart of the EUR/USD
Investors however, are now considering that maybe they moved too fast towards the greenback on hopes of a rate hike, as if the reading comes actually negative, the rate hike will again be delayed, giving the EUR room to recover further.
Technically, the 4 hours chart shows that the technical readings are biased higher, with the price above its 20 SMA and the technical indicators head north above their mid-lines. The immediate resistance comes now at 1.1000, with a break above it probably signaling a quick spike up to the 1.1050 region. If the price extends beyond this last, the pair will likely close the week near 1.1100. On the other hand, the immediate support comes at 1.0940/50, with a better-than-expected reading favoring a break below it, towards 1.0890/1.0900. Should the price extend below this last, 1.0850 is next, in route to the weekly low around 1.0820.
View live chart of the EUR/USD
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