- – The Euro gained momentum above 1.1190 against the US Dollar, and traded towards 1.1262.
- – The EUR/USD pair is currently trading in a range, and above a connecting trend line with support at 1.1210 on the hourly chart.
- – Today in the Euro Zone, the Spanish Gross Domestic Product released by the National Institute of Statistics posted an increase of 0.8% in Q1 2017.
Spanish Gross Domestic Product
Today in the Euro Zone, the Spanish Gross Domestic Product released by the National Institute of Statistics. The market was positioned for the GDP to grow by 0.8% in Q1 2017, compared with the previous quarter.
The actual result was around the forecast, as the GDP increased 0.8%. In terms of the yearly change, the Spanish Gross Domestic Product grew 3%, just as the market expected. The report stated that “The Rate Quarterly growth and annual match with the Published in the letter estimation advance of last quarter’s GDP from April. The contribution of the National demand Annual growth of GDP is from 2.2 points. For this part, foreign demand presents a contribution of 0.8 points. Both rates are similar to those of the Fourth quarter start of 2016“.
Overall, the Euro may dip a few pips towards 1.1210, but likely to find support on the downside vs the US Dollar.
EUR/USD Technical Analysis
The Euro was in an uptrend from the 1.1080 swing low against the US Dollar, and it gained pace for upsides above the 1.1150 resistance. The upside move was such that the EUR/USD moved above the 1.1190 and 1.1220 resistance to trade above 1.1250.
The pair traded as high as 1.1262 where it faced resistance and moved down below the 1.1210 level. Later, the pair found support near a connecting trend line at 1.1210 on the hourly chart. It moved back above 1.1240 and currently correcting lower. It is trading below the 23.6% Fib retracement level of the last wave from the 1.1168 low to 1.1249 high.
The pair may dip a few more pips, but likely to find support at 1.1210. The stated level is also near the 50% Fib retracement level of the last wave from the 1.1168 low to 1.1249 high. So, buying dips near 1.1210 remains a good deal in the near term with a stop of around 20 pips.Tags: EUR/USD Technical Analysis, Euro, US Dollar