EUR/USD Hits New Highs on EMU GDP, 1.1400 Eyed

EUR/USD Hits New Highs on EMU GDP, 1.1400 Eyed

7 June 2016, 12:08
Roberto Jacobs

EUR/USD Hits New Highs on EMU GDP, 1.1400 Eyed

The upward revision to the Q1 Eurozone GDP helped improve the bid tone around the shared currency, driving EUR/USD above 1.1370 region.

EUR/USD: 1.1400 on sight?

Currently, EUR/USD trades +0.16% higher at fresh daily highs of 1.1374, extending further towards 1.1400 levels. The main currency pair keeps range near the upper bound of 1.13 handle following the final revision of the Eurozone first quarter GDP figures.

The euro zone's economy rose 0.6% q/q in Q1, as compared to a 0.3% growth booked in Q4 2015. While the annual GDP growth index revealed a 1.7% increase in the euro zone's economic output over Q1 2016, slightly up from the previous quarter's final reading of 1.6%.

The major extends gains and now looks to regain 1.14 handle, as the EUR remains underpinned by upbeat fundamentals from Germany as well as from the Euroland. Earlier today, industrial production in Germany surprised on the upside in April, coming in at 0.8% on a monthly basis, after a revised negative reading of 1.1% in the previous month.

While a broadly lower greenback also backs the strength seen in the EUR/USD pair as Yellen’s comments delivered a day before continues to weigh on investors’ minds.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1393/1.1400 (May 6 high/ round number). A break beyond the last, doors will open for a test of 1.1450 (psychological levels) On the flip side, the immediate support is placed at 1.1321/06 (5-DMA/ 50-DMA) below which at 1.1281 (May 13 Low) could be tested.


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