Key Points
- Euro traded mixed vs the British Pound, and it looks like it may trade inside a range for some time.
- There is a major resistance area near 0.7900, and on the downside support lies at 0.7860-50.
- German Gross Domestic Product preliminary reading released by the Statistisches Bundesamt Deutschland posted an increase of 0.7% in Q1 2016, less than the forecast of 0.6%.
- On the other hand, the Euro Zone Gross Domestic Product released by the Eurostat poste a rise of 0.5% in Q1 2016 (preliminary).
Technical Analysis
The Euro after trading as high as 0.7919 vs the British Pound tumbled and traded down. However, it managed to stay in the range, but closed below the 100 and 200 hourly simple moving average.
If the pair fails to close back above the 100 hourly SMA, then there is a chance of it breaking the range support area of 0.7860-50, and moving down further.
On the upside, a break above 100 MA may take EURGBP towards the range resistance area of 0.7919.
Euro Zone Gross Domestic Product
Today in the Euro Zone, there were many crucial releases, including the Gross Domestic Product, which is a measure of the total value of all goods and services produced by the Eurozone was released by the Eurostat. The forecast was lined up for a rise of 0.6% in Q1 2016. However, the outcome was a bit lower, as the Euro Zone GDP preliminary reading came in at 0.5%.
The report stated that the “Seasonally adjusted GDP rose by 0.5% in both the euro area (EA19) and the EU28 during the first quarter of 2016, compared with the previous quarter, according to a flash estimate published by Eurostat, the statistical office of the European Union. In the fourth quarter of 2015, GDP grew by 0.3% and 0.4% respectively“.
The Euro was under a bearish pressure vs the British Pound today, but the 0.7860-50 support area holds the key on the downside.
