EUR/USD makes fresh highs and pulls back after US GDP

Ani Salama FXStreet

EUR/USD pushed higher and made fresh highs for the day as the knee-jerk reaction to better-than-expected US GDP data, although the spike quickly lost momentum.

EUR/USD stretched to a daily high of 1.0935 only to quickly fall back to the 1.0910 area in the minutes that followed the US GDP release. At time of writing, the pair was trading at 1.0915, still up 0.18% on the day.

Data showed US gross domestic product expanded at an inflation- and seasonally adjusted 2.9% annual rate in the third quarter, accelerating from 1.4% pace in the second quarter and above the 2.5% rise expected.

On the other side of the pond, Germany reported CPI is seen rising 0.2% in October 2016 and 0.8% on annual basis, according to a preliminary estimate, mainly in line with expectations of 0.1% and 0.8% increases expected respectively. The harmonised index of consumer prices for Germany calculated for European purposes is estimated to be up 0.7% year on year, and 0.2% MoM, versus 0.6% and 0.1% respectively.

EUR/USD levels to watch

In terms of technical levels, next resistances are seen at 1.0945 (Oct 26 high), 1.1000/04 (psychological level/Oct 19 high) and 1.1038 (Oct 20 high). On the flip side, supports could be found at 1.0873 (Oct 26 low), 1.0850 (Oct 25 low) and 1.0821 (Oct 3 low).

Author

Ani Salama

FXStreet

Ani Salama is an Economist specialized in financial markets and statistics analysis. In 2010, she joined FXstreet where she now contributes with the news section.

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