EUR/USD unmoved at 1.1150 after EU GDP data

Haresh Menghani FXStreet

The EUR/USD pair held on to its gains around 1.1150 region following the release of in-line with estimates Euro-zone GDP print for Q2 2016.

According to a flash estimate published by Eurostat, the Euro area seasonally adjusted GDP rose by 0.3% during the second quarter of 2016. The reading matched consensus estimates but showed slight deteriorating as compared to 0.6% growth recorded in the first quarter of 2016.

Meanwhile, Euro zone industrial production rebounded sharply and rose by 0.6% m-o-m in June vs previous contraction of 1.2%.

The pair had a muted reaction to the releases as market now awaits for US economic data, which would determine the Fed monetary policy outlook and eventually drive the major in the near-term.

Technical levels to watch

On a follow through buying interest above 1.1150 region, the pair is likely to make a fresh attempt to reclaim 1.1200 handle, which if conquered should lift the pair towards the very important 100-day SMA resistance near 1.1230 region.

On the flip side, 1.1130-10 now seems to act as immediate support area and a sustained weakness below this immediate support seems to drag the pair back towards retesting the very important 200-day SMA support near 1.1080 region. A decisive break below 200-day SMA is likely to trigger a fresh leg of weakness for the pair that is likely to drag the pair immediate towards 1.1020 support area.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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