- – The Euro after trading as low as 1.0850 against the US Dollar found support, and started a recovery.
- – There is a monster resistance near 1.0950 and 1.1000 where the Euro buyers may face a lot of offers.
- – Today in the Euro Zone, the Spanish and French GDP figures were released, which failed to ignite a rally in EUR/USD.
Spanish and French GDP
Today, the Euro Zone saw a couple of important GDP releases in France and Spain. First, the French Gross Domestic Product, which is a measure of the total value of all goods and services produced by France was released by INSEE.
The market was prepared for a growth rate of 0.3% in the GDP in Q3 2016, compared with the previous quarter. However, the result was a bit lower, as the GDP increased 0.2%. The yearly change in the GDP was 1.1%.
Later, the Spanish Gross Domestic Product was released by the National Institute of Statistics. The GDP grew by 0.7% in Q3 2016, compared with the previous quarter just as the market expected. The yearly change was even better, as there was an increase of 3.2%, compared with the forecast of 3.1%. Overall, the results were mixed, and as a result, there was no major upside move in the Euro during the London session today.
EUR/USD Technical Analysis
The Euro this past week suffered heavy losses against the US Dollar to trade towards 1.0850. This week it started a recovery, but finding sellers near a major resistance area at 1.0950.
The highlighted resistance area represents the 23.6% Fib retracement level of the last drop from the 1.1275 high to 1.0850 low. Moreover, the same level was a support earlier, and now acting as a resistance.
If at all the EUR/USD pair manages to close above the 1.0950 resistance, the next barrier would be around a bearish trend line on the daily chart at 1.10. In short, we can say that there are many crucial hurdles on the way up for the pair, and it won’t be easy for the Euro bulls to continue with the current recovery.
Tags: EUR/USD Technical Analysis, Euro, Euro Zone, France GDP, Spain GDP, US Dollar