Upbeat EuroZone GDP looking forward to Bullish move to EUR

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EuroZone GDP is due GMT 9.00 today and may propel a EUR bullish move towards 1.1850. Yet, US jobless claim fall may significantly give rise to a balance in the EUR rally today.

While we are writing this report (GMT 6.15), the EUR/USD pair is trading close to 1.1800 and volatility index is getting higher. However, for the next couple of hours, the pivot point would remain near 1.1810 and while looking at the last four hours index, the volatility index might have been on the higher side today.

Moves to consider: The EuroZone GDP is due at GMT 9.00 and we are expecting a little bit volatility during that time, yet it is expected to be short-lived and it the first quarter GDP beats the estimate, we are expecting a 30 to 40 pips rally for EUR. Though, at the end of the day, we are expecting EUR will be upped .30% to .40%.

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Right now, EUR is trading over 1.1800 mark (more specifically 1.1800-1.1810), an important sentimental point.

Technical overview

Technically speaking, the EUR/USD pair has moved above 23.6% firmly and we are looking at a probable target of 1.1850. However, the momentum indicator is likely to get higher after the announcement of EuroZone first quarter GDP. Yet, do not expect a lot to happen, as there was a new French addition to the financial crisis of EuroZone.

Moreover, US initial jobless claim is due after just 5 hours from now on and we are expecting it to fall lower as in the last month, US unemployment rate was at 3.9%, falling to the 3 yearly low.  

Right now, the average selling price of EUR is at 1.1840 and the average buying price is at 1.1689.

EUR/USD economic overviews today

  • USD: Unit labor cost – 2.9% (previous 2.7%)
  • Nonfarm Productivity – 0.4% (Previous .7%)
  • Trade balance – -46.2B (Previous -47.2B)
  • Crude Oil stock change – 2.072M (Previous -3.60M)

Overall, we are looking forward to a modest bullish move for EUR today, which may reach 1.1860 during EuroZone trading sessions and then fall towards the 1.1830 range at the end of the day.

Disclaimer: The content of this article is personal opinion and should not be considered as as investment advise or suggestion towards any trading activity.

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