EUR/USD bullish post lower Q1 US GDP, key data risks for Friday include Core PCE Data
The EUR/USD currency pair witnessed a moderate rise, reaching 1.0728, in the aftermath of the US GDP data release, signifying a positive reaction from the market. However, the session was characterized by limited trading activity, with the pair fluctuating within a narrow band of 1.0710/30.
The resistance level at 1.0740, corresponding to the 61.8% Fibonacci retracement level, serves as a crucial barrier for the pair. A successful breach of this threshold could indicate potential for an extended upward movement. Conversely, the 20-day moving average at 1.0660 is established as a support level, with observed buying interest around the 1.0680 price zone, providing a cushion against downward pressure.
The market sentiment leans cautiously optimistic, with expectations for an upside surprise, particularly after the hot PCE component embedded within the GDP data, hinting at a stronger economic backdrop which may influence the pair’s direction.
Market Sentiments:
- Positive: 55%
- Negative: 25%
- Neutral: 20%
The prevailing sentiment is moderately positive, fueled by the anticipatory buzz of a robust PCE reading, which could further substantiate the case for a resilient US economy. However, the existence of notable resistance levels overhead and the potential for shifts in the market’s interpretation of economic data introduces a layer of uncertainty that maintains a proportion of neutral and negative outlooks.
Key Levels to Watch: : 1.07514,1.07305,1.06926
| Levels | Support | Resistance |
|---|---|---|
| Level 1 | 1.07138 | 1.07410 |
| Level 2 | 1.07035 | 1.07488 |
| Level 3 | 1.06926 | 1.07600 |
