Investors' attention is drawn to the euro zone second quarter GDP publication. The Germany economic growth accelerated amid the exports’ increase, but the France GDP remained in the flat, such differences pose a threat to the sustainable recovery prospects. The German GDP rose up by 0.4% compared with the previous quarter, the forecast was 0.5% and its growth amounted to 1.8% in annual terms. The German economy rose up by 0.3% q/q in the first quarter.
The corrective weakness, formed by the resistance level of 1.1150, has reversed upwards. The signal for the reversal was the resistance level of 1.1150 retesting. The trades closed below this level.
The price is finding the first support at 1.1050, the next one is 1.0925. The price is finding the first resistance at 1.1150, the next one is at 1.1260.
There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows an upward movement. The upward movement will be until the price is above the Cloud.
The MACD indicator is in a positive territory. The price is cosolidating.
We expect the 1.1150 line break that will open the way for the buyers to 1.1260, further then towards 1.1420.