Key Points
- The Euro started a recovery against the US Dollar, and looks set for more gains moving ahead.
- There is a bullish trend line formed on the hourly chart of the EURUSD pair, which is acting as a support area for the pair.
- Earlier today, the German Gross Domestic Product was released by the Statistisches Bundesamt Deutschland.
- There was a rise of 0.4% in the GDP in Q2 2016, compared with the forecast of 0.2%.
Technical Analysis
The Euro recently traded as high as 1.1193 against the US Dollar where it found sellers and corrected lower. However, the downside found support near a bullish trend line formed on the hourly chart of the EURUSD pair.
The only thing is that the pair is now below the 21 hourly simple moving average, which may push the pair down once more.
Buying dips remain a good option as long as the pair is above the trend line support area.
German GDP
Earlier today during the London session, the German 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 rise of 0.2% in Q2 2016, compared with the previous quarter. However, the outcome was better, as there was a rise of 0.4%. The report added that the “Economic growth accelerated year on year, too. The price-adjusted GDP rose 3.1% in the second quarter of 2016, which was the largest increase in five years. Adjusted for the exceptionally high calendar effect, the GDP growth was 1.8% after 1.9% (unadjusted 1.5%) in the first quarter of 2016”.
Overall, the Euro is trading with a bullish bias versus the US Dollar and may continue to trader in the near term.
