Eurusd Climbs As Us Gdp Disappoints

last updated on

Eurusd Climbs As Us Gdp Disappoints

Eur/Usd Climbs Above 1.0700 As Us Gdp Disappoints

After struggling to find direction, the EUR/USD has once again gained ground after climbing above the 1.07 handle. It appears that the greenback is having a hard time mustering strength due to slow growth during Q1 2024.

For now, the pair is trading near 1.0690 and is slightly under the 1.07 round figure. On the daily chart, the 20 SMA seems to be controlled by the sellers which are sending the pair down on any advance. At the same time, other technical indicators are also hovering below the midline which means sellers are in control.

20 Sma Keeps Eur Bulls Under Check

In the short term, the EUR/USD is seen to be stuck between the MA lines. For starters, the 20 SMA is acting as a support and the 100 SMA is capping any EUR advances. Additionally, other technical indicators also confirm that the bias is still bearish despite the gains seen as of late.

On the way down, the nearest support is present at 1.0645 followed by very strong support at 1.0600. Any further selling beyond that will open the doors to 1.0570 and 1.0550.

On the way up, the nearest resistance is the 1.0700 - 1.0710 zone followed by 1.0740 and 1.0785. Either way, the support and resistance zones are very close to the current trading levels.

During the EU trading session, a surge was seen in the EUR/USD which sent it towards the 1.0729 as the markets await the US GDP report. According to the BEA, the GDP growth rate during Q1 was 1.6% against the forecast of 2.5%.

Another thing which was not received well by the investors was the consumer prices which jumped by 3.4% against the earlier reading of 1.8% only.

After the release of this data, the EUR/USD is now going through a risk aversion mode. Wall Street appears to be down while the USD is surging along with the government bond yields.

Amidst all of this, the key concern is still inflation as it will dictate when the Fed will go ahead with its first rate cut of 2024.

Trending Stories