EUR/USD: Will upbeat German GDP take it through 1.0900?

Dhwani Mehta FXStreet

The EUR/USD pair remained better bid almost throughout the Asian trading, although failed to chew the offers placed near 5-DMA at 1.0879.

EUR/USD awaits eventful session ahead

The spot witnessed a minor-bounce from 1.0860 to 1.0875 levels in Asia on the back of stalled USD buying across the board, as the US yields turned lower alongside Asian equities.

However, over the last few hours, the major is seen consolidating the recovery near daily tops, as the bulls remain expectant of a solid German GDP report for next push higher towards 1.09 handle. The German prelim GDP is expected to expand at 0.7% in Q1 versus 0.4% seen previously.

The reaction to the German GDP and Eurozone industrial production data may remain limited, as the main risk event for today remains the US CPI and retail sales data, which could add to the recent broad based US dollar strength, especially after yesterday’s better PPI and jobless claims data.

EUR/USD Technical Levels

Valeria Bednarik, Chief Analyst at FXStreet notes, “In the 4 hours chart, the price is now below its 20 and 100 SMAs, with the shortest accelerating lower and nearing the largest, this last at 1.0890. Technical indicators in the mentioned time frame have corrected higher, but hold within negative territory, far from enough to suggest an upward move. Selling interest remains strong on approaches to the 1.0900 region, but it will take a recovery beyond 1.0930 to revert the negative tone, at least in the short term. Support levels: 1.0850 1.0820 1.0770 Resistance levels: 1.0890 1.0930 1.0965.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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