EUR/USD rises ahead of Eurozone inflation & US GDP reports

Euro / US Dollar (EUR/USD) rose more than 30 pips to 1.3718 on Friday ahead of Eurozone inflation and US growth data, the shared currency is expected to extend gain up to 1.3789 if the inflation data comes better than expectations.

As of this writing, the pair is being traded near 1.3718; immediate hurdle can be noted around 1.3770, a strong horizontal resistance area, ahead of 1.3789 which is 76.4% fib level. A break and daily close above 1.3789 shall incite renewed buying interest, hence exposing 1.3891.

On downside, the pair is likely to find immediate support around 1.3642 which is the low of yesterday and 55 Daily Moving Average (DMA) as obvious in the above chart. A break and daily close below 1.3542 shall threaten 1.3570 i.e. 23.6% fib level.

Today we have a very busy calendar with some very major releases due about Eurozone and the US economy. EurStat is scheduled to release Eurozone Consumer Price Index (CPI) report for the month of February. According to the median projection of different analysts, CPI ticked down to 0.7% in February as compared to 0.8% in the same duration of a year before. A better than expected reading will be seen as bullish for EUR/USD and vice versa.

Later in the US session, US Bureau of Economic Analysis is due to release Gross Domestic Product (GDP) report for the fourth quarter. According to the forecast, the US economy grew at 2.5% in the last quarter compared with 3.2% growth in the same duration of a year before. A worse than expected reading will be seen as bullish for EUR/USD and vice versa.  Moreover, Reuters/University of Michigan Consumer Sentiment report for February is also due today. The consumer confidence rose slightly to 81.3 points this month according to the forecast. A high reading of consumer confidence is seen as positive for the economy.

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Usman Ahmed

Usman Ahmed is an individual forex trader and market analyst. He holds a Masters of Business Administration (MBA) degree. His work includes fundamental and technical reports on various currency pairs, commodity futures and stock markets. His technical analysis features price action strategies.

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