- The Euro managed to recover on the couple of times vs the US dollar, but failed to gain pace.
- There is a bearish trend line formed on the hourly chart of the EURUSD pair, which prevented the upside move.
- German Gross Domestic Product released by the Statistisches Bundesamt Deutschland posted an increase of 1.3% in Q1 2016, just as the forecast.
- In terms of the quarterly rise, there was a change of +0.7% in the GDP in Q1 2016.
The Euro is following a downtrend vs the US Dollar, and it looks like the EURUSD pair may test the 1.1120 support area in the short term. There is a bearish trend line formed on the hourly chart of the EURUSD pair, which is acting as a hurdle and pushing the pair down.
The pair is also below the 100 and 50 hourly simple moving average, suggesting that the sellers are in control.
The pair is currently trading near the 1.236 extension of the last leg from the 1.1179 low to 1.1242 high. So, there is a chance of a minor pullback in EURUSD.
German Gross Domestic Product
Earlier today, the Gross Domestic Product, which is a measure of the total value of all goods and services produced by Germany was released by the Statistisches Bundesamt Deutschland. The forecast was lined up for a change of +1.3% in the GDP in Q1 2016, compared with the same quarter a year ago.
The result was as forecasted, and even the quarterly change posted a rise of 0.7% in the GDP in Q1 2016, just as the market expected. The report stated that “quarter-on-quarter comparison (following price, seasonal and calendar adjustment) reveals that positive contributions mainly came from domestic demand. Especially fixed capital formation increased markedly at the beginning of the year”.
The Euro buyers did not find anything interesting, and that is the reason why there is a chance of more losses in EURUSD in the near term.