EUR/USD trading on the high side heading into European markets
- The Euro continues to climb against the Greenback despite market sentiment swings.
- Eurozone GDP figures could produce volatility if preliminary numbers get revised.
The EUR/USD is trading on the high side of the Tokyo session, testing into 1.2430 heading into the European markets.
The Euro has climbed against the US Dollar for four consecutive trading days, looking to reclaim lost ground after falling from February's peak of 1.2555.
The Eurozone GDP figures drop today at 10:00 GMT, and the forecast is anticipating 2.7% for the year-on-year numbers and 0.6% for the quarter-on-quarter. These are non-preliminary figures, so any surprises are unlikely, but a big beat or miss to the data could easily produce some volatility as traders adjust their positions.
Risk appetite took a dive in the early Wednesday markets as Gary Cohn, Donald Trump's top economic advisor, announced his resignation but markets recovered quickly from the news, with the EUR/USD notably failing to react to the news.
The US Dollar is still slumping amidst market fears of trade war comments coming from Trump's camp, following the president's promise to impose stiff tariffs on steel and aluminum imports into the US. Republican leaders and key business operators are working hard to try to get the president back on a leash, and while markets are operating on the assumption that everything will get resolved in a timely and peaceful manner, the Greenback is continuing to take a dive on Trump's disruptive statements.
EUR/USD Technicals
The pair is still trading high above the 200-day SMA, though the pair has been struggling to break through resistance just above the 1.2500 region. Volatility has been widening out the swing points on H4 candles, and intraday support can be found at 1.2330 and 1.2270, with resistance at 1.2470 and 1.2555.