EURUSD maintains bullish tone for further advance; EU GDP in focus
The Euro remains supported on Wednesday, holding in green for the fifth straight day and establishing above broken 1.2400 barrier (Fibo 61.8% of 1.2555/1.2154 descend).
Strong rally on Tuesday, which was sparked by news of Koreas’ summit, generated bullish signals on break above 30SMA (1.2354) and marginal close above next target at 1.2400.
Bullish setup of daily MA’s is supportive, but overbought slow stochastic and 14-d momentum heading south in negative territory, warn of further hesitation at 1.2400 zone and possible deeper pullback.
EU Q4 GDP data are the key release for the single currency in the European session, with release of US ADP private sectors employment data, due later today, also being in focus.
Eurozone’s economy is expected to grow at unchanged pace in Q4 and maintain strong growth, as Q4 forecast and Q3 GDP stand just under multi-year high.
EU economy is expected to grow by 0.6% q/q and 2.7% y/y, with firm release today expected to further boost the Euro for test of next targets at 1.2460/87 (Fibo 76.4% / 20-d upper Bollinger band).
Corrective dips are expected to hold above broken 30SMA to keep fresh bulls intact.
Res: 1.2433; 1.2460; 1.2487; 1.2500
Sup: 1.2400; 1.2354; 1.2331; 1.2310