EUR/USD Fades a Spike to 1.1225 on German GDP
The EUR/USD pair
jumped to fresh daily highs following the release of in-line with
expectations German final GDP data, although failed to keep the bids and
slipped back to the familiar range around 1.1215 region.
EUR/USD: 100-DMA still in focus
Currently, EUR/USD trades modestly lower at 1.1214, now eyeing a test of 1.12 handle. The main currency pair fell back in the red zone and heads towards 1.12 handle, as the bulls reversed German GDP-induced knee-jerk spike as the US dollar continues to remain in demand across the board. Meanwhile, the USD index now trades +0.06% at 95.30 levels.
The German economy rose 0.7% over Q1 2016, staging the strongest pace of expansion since the final quarter of 2015, when the economy added just 0.3%, although matched market’s expectation of an increase of 0.7%.
Next in focus for the major remains the German ZEW business surveys, which are expected to provide much-need boost to the EUR bulls. The headline economic sentiment is seen higher at 12.0 in May from 11.2 measured in April, while the Current Situation Index is expected also to trend up to 48.8 from 47.7 in the previous month.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance at 1.1241/55 (daily R1/ 10-DMA). A break beyond the last, doors will open for a test of 1.1285/1.1300 (1h 200-SMA / round number). On the flip side, the immediate support is placed at 1.1185 (100-DMA) below which at 1.1102 (200-DMA) could be tested.