Euro (EUR) extended upside movement against the US Dollar (USD) on Monday, increasing the price of EURUSD to more than 1.1230 following the release of Eurozone’s Gross Domestic Product (GDP) 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 1.1231. A support may be noted around 1.1216, a key horizontal support area as demonstrated in the following chart ahead of 1.1180, the swing low of the recent downside wave and then 1.1131, the channel support. A break and daily closing below the channel support would push the pair into deeper correction phase.

On the upside, the pair is likely to face a hurdle near 1.1338, the horizontal resistance area ahead of 1.1376, the swing high of 11^th February. The technical bias will remain bearish as long as the 1.1616 resistance area is intact.

Eurozone Growth

After eight painful years of crises and near stagnation, the eurozone’s economy has finally surpassed its pre-crisis high, beginning the year by outpacing growth in the UK and the US. The eurozone economy grew 0.6 per cent in the first quarter, helped by a surprisingly robust performance by France. The better-than-expected figures took overall gross domestic product past the peak it hit in the opening quarter of 2008. The figure, released by Eurostat, the European Commission’s statistical arm, showed the single currency area expanding at the fastest rate since the beginning of 2015 and performing better than the broader EU for the first time since 2011.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair in short term could be a good strategy.

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.