Eur/usd - page 453
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EUR/USD: Pair Drops From 200 DMA After US GDP
The pair rose notably during the European session, printing daily highs around the $1.11 mark where previous strong lows and the 200-day moving average are located. However, bulls failed to hold gains and the euro trimmed most of the gains during the US session.
The EUR/USD pair was trading 0.35% stronger around $1.1060 during the last check.
Earlier in the day, the third estimate of the US first quarter GDP ticked higher to 1.1% from 0.8% booked in the second revision. Moreover, the annualized PCE moderated to 1.5% from 1.9% and the GDP price index slowed to 0.4% from 0.6% .
"Within real GDP, total final sales were revised to up at a 1.3% annual rate from 1.0%, with the contribution from net exports revised to +0.1 point from -0.2 points. The contribution of inventories remained at -0.2 points. The pace for real consumption was revised to 1.5% from 1.9%," Jim O'Sullivan, chief US economist at High Frequency Economics, said after the release.
Furthermore, the US consumer confidence rating unexpectedly and notably improved to 98.0 points from 92.6 scored in the previous month, according to the Conference Board.
However, during the first three months of the year growth in consumer spending was revised down to 1.5% from 1.9%. Economists had forecast for an upward revision to 2.0%.
On Tuesday's Asian session, there has been upward correction after yesterday's large-scale sales, as investors seized on news of fiscal incentives as a straw. In addition, we are likely to wait a long period of uncertainty before the formal procedure of Brexit begins.
Resistance zone is too wide - 1,1100-1,1200, and perhaps even slightly above 1.1200, but we are still waiting for the downward movement to 1.0800 on concerns about the existential crisis in Europe. From a tactical point of view, since the opening of trading on Monday resistance is near 1.1075/80.
EUR/USD maked slight increase on Tuesday session. The US dollar added 40 pips to a closing price of 1.1063 and the euro failed to recover the losses from Friday and depreciated further against the dollar. Resistance level during yesterday's session turned out to be 1.1111 and pair marked the intraday low at 1.1009. The outlook remains negative as possible recovery of the euro will resume the bearish sentiment.
Yesterday EURUSD rose with a narrow range and closed near the high of the day, in addition managed to close within previous day range, which suggests being slightly on the bullish side of neutral.
The pair failed to close above the 200-day moving average and continues trading below the 10, 50 and 200-day moving averages that are acting as dynamic resistances.
The key levels to watch are: A daily resistance at 1.1237, a daily support at 1.1097, the 200-day moving average at 1.1080 (resistance) and Fridays low at 1.0912 (support).