EUR/USD Keeps the Red Around 1.135 Post-GDP, US Data Eyed

EUR/USD Keeps the Red Around 1.135 Post-GDP, US Data Eyed

13 May 2016, 11:52
Roberto Jacobs
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EUR/USD Keeps the Red Around 1.135 Post-GDP, US Data Eyed

The recovery from above 50-DMA stalled near 1.1355 region in the European session, with EUR/USD consolidating the downside, paying little attention to the sluggish Eurozone GDP numbers.

EUR/USD awaits US dataflow

Currently, EUR/USD trades -0.22% lower at 1.1350, recovering from session lows struck at 1.1329 immediately after the European open. The main currency pair’s recovery lost legs in the last hour, despite the US dollar moving-off two-week tops, as downbeat Eurozone Q1 206 GDP figures capped the minor-rebound.

The Eurozone GDP rose by 0.5% during Q1 2016, compared with 0.3% increase posted in the previous quarter, while missing forecasts of 0.6% growth.

The calm seems to have spread as the major now awaits the US economic releases, viz. retail sales, PPI and consumer sentiment, due to be reported in the NA session for fresh action in the pair.

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 1.1320/00 (50-DMA/ round number) below which at 1.1271 (Apr 29 Low) could be tested.


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