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The FxPro Analyst Team

US GDP, EURUSD Up or Down ?

We will see the release of the US Q4 GDP (QoQ annualized) at 13:30 GMT this afternoon.

Despite the market consensus of 2.2% for the US Q4 GDP (QoQ). The quarter-on-quarter Q1 to Q3 US GDP final readings were 1.1%, 1.4% and 3.5%, showing a robust economic recovery.

EURUSD has rebounded since the beginning of this year after testing the support line at 1.0350. It has been trading along the downside uptrend line support thereafter as a result of the weakening of the dollar.
EURUSD has rallied 3.3% from 3rd to 25th Jan.

However, on 26th Jan, on the daily chart, the price retraced with the longest bearish candle this year as It was trading below the long term major resistance at 1.0800.

On the 4 hourly chart, the 10 SMA crossed over the 20 SMA, also the uptrend line support was broken, so be aware of upside selling pressure.

The daily Stochastic Oscillator is crossing over from above suggesting a retracement.

The resistance level is at 1.0700, followed by 1.0720 and 1.0760.
The support line is at 1.0675, followed by 1.0660 and 1.0640.

Keep an eye on the US Gross Domestic Product Price Index (Q4). Previous 3.5% with a consensus expecting 2.2%.

With a better-than-expected figure (>2.3%) EURUSD will likely fall and test support lines.
With a lower-than-expected figure (<1.9%) EURUSD will likely rally and test resistance levels. EURUSDDaily

EURUSDH4

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