EURUSD advances after strong German Q3 GDP; data from EU in focus

Slobodan Drvenica Windsor Brokers

EURUSD

The Euro holds firm tone on Tuesday and rose to three-week high on bullish acceleration after upbeat German GDP data (Q3 GDP 0.8% vs 0.6% f/c/prev). Bullish signals were generated on advance through 20SMA (1.1674) and broken neckline (1.1685) for probes above 1.1700 handle towards 30SMA (1.1715) and 100SMA (1.1731).
Tuesday's calendar is full, with ECB President Draghi talking at 10:00GMT and a batch data from the Eurozone due at the same time.
German ZEW economic sentiment is forecasted to rise in November (20 f/c vs 17.6 in Oct); EU Q3 GDP is expected to stay unchanged at 2.5%; EU industrial production is forecasted to fall in September (-0.6% f/c vs 1.4% in Aug) while EU ZEW economic sentiment is forecasted at 29.3 in November vs 26.7 previous month.
Forecasted numbers look supportive overall and releases at/above consensus could send the single currency higher.
Lift above 100SMA target (1.1731) would open way towards 55SMA (1.1795) and daily cloud base (1.1815).
Rising hourly cloud (cloud is spanned between 1.1653 and 1.1636) and 10SMA (1.1636) continue to underpin the advance and violation of these supports would turn near-term structure negative.

Res: 1.1715; 1.1731; 1.1770; 1.1795
Sup: 1.1685; 1.1674; 1.1661; 1.1636

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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