Key Points
- The Euro is under pressure, but remains supported near 1.0570 against the US Dollar.
- There is a major bullish trend line with support at 1.0570 formed on the hourly chart of EURUSD, acting as a buy zone.
- Today in the Euro Zone, the French Gross Domestic Product for Q1 2017 was released by INSEE.
- The result was in line with the forecast, as there was a rise of 0.4% in Q1 2017 (QoQ).
EURUSD Technical Analysis
The Euro traded above 1.0600 against the US Dollar recently, but failed to maintain gains. The EURUSD pair traded lower, but found support near a major bullish trend line at 1.0570 on the hourly chart.
The pair is currently struggling to clear the 50% Fib retracement level of the last downside move from the 1.0627 high to 1.0564 low.
So, there is a chance that the pair may retest the trend line support again before attempting a bounce back towards 1.0600. In short, the trend line support at 1.0570 holds the key.
French Gross Domestic Product
Today in the Euro Zone, the French Gross Domestic Product for Q1 2017 was released by INSEE. The market was expecting the total value of all goods and services produced by France to increase by 0.4% in Q1 2017, compared with the previous quarter.
The outcome was in line with the forecast, as there was a rise of 0.4% in Q1 2017 (QoQ). The French Consumer Spending report was also published. It posted an increase of 0.6% in Jan 2017 (MoM). The report added that “household consumption expenditure on goods increased in volume*(+0.6%), after a steep decline in December 2016 (−1.0%). Spending on energy sped up sharply. Purchases of food products picked up”.
Overall, the Euro may bounce back against the US Dollar, as long as the EURUSD pair remains above the trend line support at 1.0570.
