It has been a quiet week for EUR/USD and the pair shrugged off a double-digit decline in Eurozone GDP on Friday. Currently, EUR/USD is trading at 1.1806, down 0.06% on the day.
Eurozone economy savaged by Covid-19
There was grim news on the economic front on Friday, as Eurozone GDP plunged 12.1% in the second quarter, its worst quarterly decline on record. The sharp decline reflected the strict lockdown measures across much of Europe, which brought large swathes of the economy to a standstill. This second estimate confirmed the initial release, so the market reaction was muted. Still, it’s clear that the eurozone remains in deep economic trouble, and further soft economic numbers could put downward pressure on EUR/USD, which has looked strong of late, with the pair flirting with the 1.19 level earlier in August.
EUR/USD has been flat in the Asian and European sessions.
- 1.1903 is the next resistance line, followed by 1.2019
- 1.1683 is providing support. Below, there is support at 1.1579
- EUR/USD continues to put pressure on the 10-day MA line. If the pair breaks below, it would be a bearish signal for EUR/USD
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at firstname.lastname@example.org. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.