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EURUSD Trades above Support Ahead of German and Eurozone Q4 GDP

Tomorrow we will see the release of the German 2016 Q4 GDP first readings (YoY and QoQ) at 07:00 GMT, and the Eurozone 2016 Q4 GDP second readings (YoY and QoQ) at 10:00 GMT.

The German GDP final readings (YoY) has been volatile in the range between 1.3% and 3.1% since Q2 2015. The expectations for the 2016 Q4 GDP is 1.7%.

The Eurozone GDP final readings (YoY) have oscillated within a narrow range between 1.6% and 1.7% since Q3 2015. The expectations for the 2016 Q4 GDP second readings is 1.8%, in line with the first reading.

The German ZEW Economic Sentiment and Current Situation for February will also be released at 10:00 GMT on the same day. Both figures have seen an uptrend since July 2016.

On the daily chart, EUR/USD has retraced after testing the long term major resistance at 1.0800, as the selling pressure is heavy above the level.

However, the fall has been held after testing the near term major support line at 1.0600 since last Friday, where the 50 SMA situates, which is providing a stronger support.

The daily Stochastic Oscillator is below 20, suggesting a rebound.

Be aware that, on the daily chart, the price is still trading below the 10 and 20 SMAs, suggesting the selling pressure above the level at 1.0700 is still heavy.

The resistance level is at 1.0640, followed by 1.0660 and 1.0680.
The support line is at 1.0620, followed by 1.0600 (50 SMA) and 1.0580.

Keep an eye on the German and Eurozone GDP figures, to be released tomorrow, as they will influence the strength of the Euro and the movement of EUR/USD.



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