Key Points
- The Euro moved down this week and traded towards the 1.1700 support against the US Dollar.
- There is a bearish trend line with resistance at 1.1735 forming on the hourly chart of EURUSD.
- Recently in the Euro Zone, the Italian Gross Domestic Product for Q2 2017 was released by the National Institute of Statistics.
- The outcome was above the forecast, as there was an increase of 1.5% (Prelim) in the GDP (YoY).
EURUSD Technical Analysis
The Euro traded lower during the past sessions and tested the 1.1700 support against the US Dollar. The EURUSD pair even moved below the 21 hourly simple moving average and traded as low as 1.1690.
The pair later started a recovery and currently trading near the 38.2% Fib retracement level of the last decline from the 1.1759 high to 1.1698 low. On the upside, there is a bearish trend line with resistance at 1.1735 forming on the hourly chart of EURUSD.
The 21 hourly simple moving average and the 61.8% Fib retracement level of the last decline from the 1.1759 high to 1.1698 low is also on the upside to act as a resistance near 1.1740-50. Once there is a break above 1.1740, there are chances of more gains.
Italian Gross Domestic Product
Today in the Euro Zone, the Italian Gross Domestic Product for Q2 2017 was released by the National Institute of Statistics. The market was positioned for a rise of 1.4% in the GDP compared with the same quarter a year ago.
The actual result was above the forecast, as there was an increase of 1.5% in the GDP (Prelim). In terms of the quarterly change, there was an increase of 0.4% in the GDP, which was in line with forecast and similar to the last rate. The report added that:
In the first quarter of 2017 the seasonally and calendar adjusted, chained volume measure of Gross Domestic Product (GDP) increased by 0.2 per cent with respect to the fourth quarter of 2016 and by 0.8 per cent in comparison with the first quarter of 2016.
Overall, the EURUSD pair might retest the trend line resistance and could even attempt a break above 1.1740 in the near term.
