EUR/USD Side-Lined Around 1.1375, German, EZ GDP Eyed

EUR/USD Side-Lined Around 1.1375, German, EZ GDP Eyed

13 May 2016, 07:28
Roberto Jacobs
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EUR/USD Side-Lined Around 1.1375, German, EZ GDP Eyed

The EUR/USD pair extends its overnight consolidation phase into late-Asian trades, trading absolutely lacklustre ahead of a data-heavy macro calendar due later today.

EUR/USD trades around 20-DMA at 1.1378

Currently, EUR/USD trades dead flat at 1.1373, retracing slightly from session lows reached at 1.1367 pre-Chinese open. The persisting risk-off market profile and a somewhat higher US dollar across the board appears to have little impact on the main currency pair, with the bulls awaiting crucial macro updates due later today for fresh momentum on both the EUR and USD.

Markets moved past hawkish comments from Fed official Rosengren and now look forward to the German prelim GDP and final CPI figures, which will be followed by flash GDP data from the Euroland due to be reported in the European session.

Germany's GDP is expected to have increased 0.6% in the January-March period and 1.2% annually, while the flash Eurozone GDP reading is expected to show 0.6% growth q/q and 1.6% annual growth.

Looking ahead, we also have a slew of crucial economic releases from the US economy, including the retail sales, PPI and consumer sentiment data, which are expected to provide fresh light on the strength of the US economic recovery and also on the US interest rates outlook.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1400/11 (round number/ 10-DMA). A break beyond the last, doors will open for a test of 1.1448/50 (May 11 high/ psychological levels). On the flip side, the immediate support is placed at 1.1357/33 (May 10 & Apr 29 Low) below which at 1.1315/00 (50-DMA/ round number) could be tested.


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