EURUSD – solid EU GDP data supported bounce above 1.24
The Euro bounces above 1.24 handle after failure to break below Monday’s low at 1.2336, underpinned by rising 10SMA (1.2322) which stayed intact.
Fresh advance cracked barrier at 1.2412 (Fibo 38.2% of 1.2537/1.2334 pullback) and pressuring base of thickening hourly cloud (spanned between 1.2424 and 1.2450).
Extension of recovery rally from hourly double-bottom at 1.2335 needs lift above hourly cloud to turn near-term focus higher signal higher low formation at 1.2335.
Solid EU GDP data released today gave fresh boost to the single currency.
The Gross Domestic Product in the Eurozone rose 2.7% y/y, meeting the forecast while Q3 result was revised to 2.8% from initial release at 2.6%.
The EU economy expanded at its fastest rate in a decade in 2017 and maintains positive sentiment at the beginning of 2018.
Strong GDP data would further boost the Euro which holds in year-long uptrend from 1.0340 (Jan 2017 low) and recently probed above 1.2500 barrier, focusing target at 1.2597 (Fibo 61.8% retracement of 2014-2017 fall from 1.3992 to 1.0340).
Res: 1.2424; 1.2450; 1.2460; 1.2493
Sup: 1.2376; 1.2335; 1.2322; 1.2300