After a week of losses, the EURUSD is trading in positive territory over 1.1000 on Monday. The duo will meet the next obstacle at 1.1050, and a prolonged recovery is possible once that level is crossed.
Eurozone inflation and growth numbers help the EURUSD maintain its position.
The Eurozone’s real GDP (GDP) increased by 0.3%. On a quarterly basis in the second quarter, up from 0.1% contraction in the first quarter. And somewhat better than the market consensus of 0.2% growth.
Other Eurozone statistics indicated that the Harmonized Index of Consumer Prices (HICP). In July, annual growth was 5.3%, down from 5.5% in June. The Core HICP, which excludes volatile costs such as food and energy. Remained constant at 5.5% in the same period, contrary to experts’ expectations of 5.4%.
In the post-meeting news conference last Thursday. European Central Bank (ECB) President Christine Lagarde refrained from announcing a rate rise in September. Emphasizing the data-dependent approach. Several ECB policymakers stated ahead of the weekend. That crucial interest rates may be raised again in September or that the rises could be paused.
The absence of additional weakness in core prices, as well as the Eurozone economy’s reasonably solid performance in Q2, appear to be helping the Euro keep its footing. At least for the time being.
There will be no high-level data releases in the United States in the second part of the day, so investors may search for technical cues before deciding on the next short-term direction.
Technical Outlook
The 4-hour chart’s Relative Strength Index (RSI) remains at 50, indicating a lack of directional momentum. On the upside, 1.1050 (Fibonacci 50% retracement of the most recent upswing, 20-period SMA) serves as the initial resistance level, followed by 1.1100 (Fibonacci 38.2% retracement, 100-period SMA) and 1.1150 (Fibonacci 23.6% retracement).
If EURUSD falls below 1.1010/1.1000 (200-period SMA, Fibonacci 61.8% retracement) and closes there on a daily basis, more losses approaching 1.0950 (static level) and 1.0900 (may be seen).
