EUR/USD Unimpressed by German Data, Dips to 1.1350
Having faced strong offers near 20-DMA (1.1378), the EUR/USD pair dropped sharply in early Europe, with the bulls unimpressed by upbeat German GDP figures.
EUR/USD testing 1.1350 on German data
Currently, EUR/USD trades -0.18% lower near fresh session lows of 1.1343, finally breaking lower from around 1.1375 consolidation box. The main currency pair came under renewed selling pressure on the back of resurgence of US dollar demand as the European traders hit their desks.
Moreover, the major completely ignored the upbeat German GDP data and in-line with expectations German CPI figures, as the sentiment around the greenback continue to dominate moves in the EUR/USD. Germany’s prelim GDP grew by 0.7% q/q in the first quarter after growing 0.3% in the last quarter of 2015, against forecasts of a 0.6% print. While Germany final CPI for April final m/m came in at -0.4% versus -0.4% expected.
Focus now turns towards the Euro zone flash GDP data due later this session ahead of the US retail sales, PPI and consumer sentiment data, which will provide fresh direction on the major.
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 1.1333 (daily S2/ Apr 29 Low) below which at 1.1315/00 (50-DMA/ round number) could be tested.