- – The Euro climbed above 1.0550 against the US Dollar this week, but remains below a major hurdle.
- – There is a crucial bearish trend line resistance at 1.0600 on the 4-hours chart, which may stop the current upside move in EUR/USD.
- – The German Gross Domestic Product released recently for Q4 2016 by the Statistisches Bundesamt Deutschland posted an increase of 0.4% (QoQ), just as the market expected.
German Gross Domestic Product
In the Euro Zone, there was a major release recently, as the German Gross Domestic Product for Q4 2016 was published by the Statistisches Bundesamt Deutschland. The forecast was aligned for the GDP to grow by 0.4% in Q4 2016, compared with the previous quarter.
The result in line with the forecast, as the total value of all goods and services produced by Germany increased 0.4% in Q4 2016. There was another important release, as the GfK Consumer Confidence was reported for March 2017. The market was expecting a decline from 10.2 to 10.1. However, the result was a bit lower, as the GfK consumer climate forecast for March is at 10.0 points.
Overall, there was no major surprise, which resulted in consolidation in EUR/USD.
EUR/USD Technical Analysis
The Euro this week declined below 1.0500 against the US Dollar, but later found support at 1.0490 and recovered. The EUR/USD pair bounced back sharply and moved above the 38.2% Fibonacci retracement level of the last decline from the 1.0675 high to 1.0493 low.
However, the upside is currently facing sellers just below 1.0600. There is a crucial bearish trend line resistance at 1.0600, which is playing its role in acting as a barrier. Also, it looks like the pair is struggling to settle above the 50% Fibonacci retracement level of the last decline from the 1.0675 high to 1.0493 low.
So, it looks like the EUR/USD pair is facing a monster barrier at 1.0600 on the 4-hours chart, which won’t be easy to break. If there is no clear break, there is a chance that the pair might move down, and trade below 1.0550 once again. The 4-hour RSI for EUR/USD is currently just above the 50 level, but struggling to gain pace.Tags: EUR/USD Technical Analysis, Euro, German GDP, German Gross Domestic Product, US Dollar