EURUSD Prospects: As Germany goes into The economic downturn. Technical recession throughout the winter is verified by German Q1 GDP.

EURUSD Foundation backdrop

Following German GDP (refer to economic schedule under) shocked investors and indicated that Europe’s largest economy. That had technically entering a winter recession, the euro has continued to fall vs the US dollar today. The official indication of a downturn is two successive quarters with falling revenue. Which gives currency bulls little hope in a cautious atmosphere.

The US debt ceiling is still on traders’ thoughts, and because there is still no agreement over the horizon. Markets are getting anxious, which benefits the dollar being a safe haven. The US was placed on red watch by the ratings agency Fitch for a potential downgrade as a result of the continuing debt ceiling negotiations. Adding to the market’s already uneasy state.

It will be fascinating to watch if the (ECB) officials on the following day reference the most recent German GDP figure. Which is in the context of the current narrative that has been overly aggressive

From a US viewpoint, the only other significant event to coincide with Collins’ speech from the Fed is the US GDP. The FOMC minutes from Wednesday failed to help the euro’s plight. Because several members were considering either a halt or additional raise at the June meeting. However, going ahead, the possibility of further rate increases remains open. Important US economic indicators, such as the current GDP and tomorrow’s core PCE price index.  Durable goods orders, and Michigan consumer sentiment, have additional relevance as a result.

Flash Points

As of right now, the selling pressure in EURUSD seems unrelenting.

at relation to its primary competitors, the dollar trades at multi-week surges.

Markets were let down by Germany’s final GDP growth ratio.

Economic Activity Schedule

Technical Perspective

The daily EURUSD market movement has just broken under the important junction region at 1.0736.  Looking to the psychological support level around 1.0700, which was first tested in March 2023. There is certainly room for more downward movement, especially if the present risk-off mood persists. Despite that, the duo is mostly dependent on outside fundamental macro factors given the large number of shifting variables

Important Levels to Watch

Key Resistance levels:

• 1.0900/ 50-day MA (yellow)
• 1.0800
• 1.0736

Key Support levels:

• 1.0700
• 1.0615