EUR/USD Breaks Key Support After Eurozone GDP Data

FXOpen

The Euro (EUR) inched higher against the US Dollar (USD) on Monday during Asian session, increasing the price of EURUSD to more than 1.1300. The technical bias remains bullish because of a Higher High in the recent upside rally however the pair recently broke a key support level due to which some more downside movement can be expected.

Technical Analysis

As of this writing, the pair is being traded near 1.1309. A hurdle may be noted near 1.1338, a key horizontal resistance area ahead of 1.1616, the swing high of 3rd May as demonstrated in the following daily chart. A break above the 1.1616 resistance area will confirm the bullish bias, validating a move towards the 1.1714 resistance area in the long run.

EUR/USD Breaks Key Support After Eurozone GDP Data

On the downside, the pair is likely to find a support around 1.1217, a key horizontal support level ahead of 1.1144, the swing low of 24th April and then 1.1100, the psychological number. The bias will remain bullish as long as the 1.1217 support area is intact.

Eurozone Growth

Seasonally adjusted gross domestic product for the 19-member eurozone grew by 0.5 percent during the January-March period, compared to the last quarter of 2015, according to official flash estimates released Friday. The figure was revised downward from the preliminary flash estimate of 0.6 percent announced in April. Compared with the first quarter of 2015, GDP growth of 1.5 percent was registered during the first quarter of 2016. The flash estimates published by Eurostat, the European Union’s statistical office, showed that GDP of the entire 28-member EU also grew by 0.5 percent during the January-March quarter when compared to the last quarter of 2015 and by 1.7 percent in comparison with the same quarter last year.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair around any of the above mentioned levels could be a good strategy if we get a valid bullish reversal candle.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodities and European currencies Test Key Supports EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News

Latest articles

Forex Analysis

Commodities and European currencies Test Key Supports

On the eve of the Easter holidays, the main currency pairs have slightly slowed down the development of the main trends and are consolidating near key ranges, the breakdown of which could provoke a change in the vectors of medium-term

Shares

Stock Market Analysis: NVDA Losing Leadership?

Since the start of the week, the S&P-500 Index (US500) is up about 0.58% while NVDA's share price is down about 3.8%. This is a worrying sign for Nvidia stock investors — could it be a sign

Forex Analysis

EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March

As the EUR/USD chart shows at the start of the European session today, the exchange rate has dropped below EUR 1.08 per US dollar.

Tuesday's news contributed to this. According to Nasdaq.com, on March 26, 2024, The

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.