EUR/USD Outlook: Eurozone GDP and Inflation Beat Lowly Expectations
Eurozone GDP and EUR/USD Price, Analysis and Chart:
- Eurozone inflation and growth nudge higher but remain muted.
- EUR/USD battles with technical resistance – Will it hold?
EUR/USD Battling its Long-Term Moving Average
The latest set of EZ inflation and growth data will give incoming ECB head Christine Lagarde something to cheer about with both readings beating expectations. Core inflation y/y rose to 1.1% against expectations of 1.0%, while Q3 GDP came in at 0.2% against expectations of 0.1%.
DailyFX Economic Calendar
EUR/USD is now battling the 200-day moving average again after having failed at its first attempt to push through last week. The pair have rallied strongly off short-term support around 1.1072, helped in part by a weaker US dollar. The daily chart shows the formation of an upside-down head and shoulders formation which suggests that a break higher may occur in the near-term. The first upside target is the August 6 high at 1.1250. The CCI indictor is now showing the market as overbought but not at the extreme levels seen in mid-October and early-June.
EURUSD Daily Price Chart (February – October 31, 2019)
IG Client Sentiment shows that traders are 57% net-short EURUSD, a bullish contrarian bias.
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