EURUSD Plunges As Eurozone’s Q3 GDP Remains Steady

The Euro (EUR) inched lower against the US Dollar (USD) on Monday, dragging the price of EURUSD to less than 1.0960 following the release of some key economic news. The technical bias remains bearish because of a lower low in the recent downside move.

Technical Analysis

As of this writing, the pair is being traded near 1.0952. A support may be seen around 1.0911, the horizontal support area ahead of 1.0900, the psychological number and then 1.0851, the swing low of the last major downside move as demonstrated in the given below daily chart.

EURUSD Plunges As Eurozone’s Q3 GDP Remains Steady

On the upside, the pair is expected to face a hurdle near 1.0969, the horizontal resistance area ahead of 1.0000, a major psychological number and then 1.1123, another huge horizontal resistance area. The technical bias will remain bearish as long as the 1.1327 resistance area is intact.

Eurozone Q3 GDP

Eurozone economic growth remained stable in third quarter, preliminary flash estimate from Eurostat showed Monday. Gross domestic product climbed 0.3 percent sequentially in the third quarter, the same pace of growth as seen in the second quarter. The pace of growth matched economists’ expectations. On a yearly basis, economic growth remained at 1.6 percent as economists had expected. The GDP growth in the EU28 held steady at 0.4 percent on quarter and the annual growth at 1.8 percent in the third quarter.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair on short term rallies still appears to be a good strategy.'
Usman Ahmed

Usman Ahmed is an individual forex trader and market analyst. He holds a Masters of Business Administration (MBA) degree. His work includes fundamental and technical reports on various currency pairs, commodity futures and stock markets. His technical analysis features price action strategies.

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