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EURGBP
EURGBP

EURUSD Seesaws Around 1.10 After Mixed Eurozone GDP

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Nikolas Papas Forex Analyst
    Summary:
  • EURUSD retreats from daily highs at 1.1015 after Eurozone Q3 GDP came in 0.2% as expected, while the yearly reading came in at 1.2%, topping forecasts of

EURUSD retreats from daily highs at 1.1015 after Eurozone Q3 GDP came in 0.2% as expected, while the yearly reading came in at 1.2%, topping forecasts of 1.1%. The Employment Change (QoQ) came in at 0.1%, below forecasts of 0.2% in 3Q while the  Employment Change yearly reading came in at 1% in line with forecasts.

Traders await the US PPI at 13:30GMT with expectations at 0.3% to indicate that prices of raw materials used by producers picked up in October.

EURUSD Support and Resistance Levels

EURUSD made fresh monthly lows during the Asian session at 1.0993 but managed to rebound above the 1.10 ahead of the GDP data. On the technical side the momentum is bearish now as the pair trades below the 50 and 100-day moving averages. The rebound from two-year lows at 1.0878 stalled at 1.1172 amid support that risky assets found on better news from US-China trade tensions and Brexit. The correction has driven the price back to 1.10 zone.

Now on the downside, immediate support stands at 1.0993 daily lows, a break below that level might attract more sellers to join the action that may push the price down to 1.0972 the low from October 10th. On the upside, first resistance stands at 1.1019 yesterday’s high, a break above can lead prices up to 1.1039 the 50-day moving average before an attempt to 1.1102 the 100-day moving average.