When is the Eurozone flash GDP and how could it affect EUR/USD?
Eurozone flash GDP Overview
The second reading of the Eurozone second-quarter GDP figures is due later today at 0900 GMT. The consensus amongst traders expects the bloc’s economic growth rate to remain steady at 0.2% inter-quarter in Q2 2019 while on an annualized basis, is also expected to remain unchanged at 1.1%.
How could affect EUR/USD?
On a positive surprise, the EUR bulls could receive the much-needed impetus that may push the EUR/USD pair back above the 1.1200 barrier. However, the spot could fall back towards the 1.1150 level should the data disappoint.
In terms of technicals, “EUR/USD is capped by a dense cluster of resistance lines between 1.1184 to 1.1196. This area includes the Bollinger Band 15min-Upper, the Fibonacci 38.2% one-month, the BB 1h-Middle, the Simple Moving Average 200-1h, the Fibonacci 23.6% one-day, the SMA 50-1h, the SMA 10-4h, the SMA 5-1d, the Fibonacci 38.2% one-week, and the Fibonacci 38.2% one-day. Further resistance awaits at 1.1254 where we see the convergence of the Pivot Point one-day Resistance 2, the previous weekly high, and the Fibonacci 61.8% one-month. Looking down, some support awaits at 1.1161 which is the confluence of the SMA 10-1d, the BB 4h-Lower, the BB 15min-Lower, the SMA 100-4h, and the Fibonacci 61.8% one-week. Further support awaits 1.1138, where we see the Fibonacci 23.6% one-month and the Pivot Point one-day S2 meet up,” FXStreet’s Analyst Yohay Elam notes.
Key Notes
Key focus on German, Euro area GDP and UK CPI – Danske Bank
German Prelim GDP contracts 0.1% in Q2, matches expectations
Daily Recommendations on Major - EUR/USD
About Eurozone flash GDP
The Gross Domestic Product released by the Eurostat is a measure of the total value of all goods and services produced by the Eurozone. The GDP is considered as a broad measure of the Eurozone economic activity and health. Usually, a rising trend has a positive effect on the EUR, while a falling trend is seen as negative (or bearish).