EUR/USD Climbs to Session High Level of 1.1370 ahead of Euro-Zone GDP

EUR/USD Climbs to Session High Level of 1.1370 ahead of Euro-Zone GDP

7 June 2016, 10:40
Roberto Jacobs
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EUR/USD Climbs to Session High Level of 1.1370 ahead of Euro-Zone GDP

Heading into the release of final print of the composite Euro-zone GDP for Q1 2016, the shared currency seems to have gained traction against the US counterpart with the EUR/USD pair testing session high level of .1370.

Ahead of the GDP print, the pair gathered some bullish momentum after the release of German Industrial Production data that showed in-line with estimated growth of 0.8% m-o-m. The positive surprise came in terms of annual growth, showing German factory output raise by 1.2% in April vs an expected rise of 1.0%.

Moreover, a fresh bout of US Dollar selling pressure, led by falling expectation of a Fed rate-hike in June, also seems to extend support to the EUR/USD pair's up-move as the Federal Reserve Chairwoman Janet Yellen, in her speech on Monday, failed to provide any clues over the specific timing for the Fed’s next interest-rate action. 

The Euro-zone final GDP print would provide fresh impetus for trading moves for the pair during European session.

Technical outlook

John Benjamin, Analyst at Orbex notes, "EURUSD closed with a doji yesterday and a bearish follow through today could see prices starting to pull lower. Price tested the resistance levels of 1.14 - 1.1380 yesterday. We currently see a strong hidden bearish divergence in EURUSD with the current lower highs in prices. Correction in the EURUSD could see prices test previous major support at 1.12170. The EURUSD bias remains sideways for the moment."


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