EUR/USD looks to Eurozone & German GDP
Stronger than forecast US GDP data boosted expectations of a faster economic recovery, lifting US treasury yields and the US Dollar.
German and Eurozone GDP data is due today. German GDP is expected to show -1.5% contraction. European policymaker are looking to an upside surprise from the preliminary GDP prints in light of upbeat Eurozone economic sentiment data and strong German inflation.
Stronger than forecast growth could lift the Euro.
US PCE and spending data is also due.
Where next for EUR/USD?
The pair a two month high of 1.2150 in the previous session and has eased back slightly consolidating around 1.2115.
The EUR/USD trades within its ascending trendline dating back to early April and also above its 50 & 100 EMA, in an upward trend. However, the MACD looks like it could be turning bearish.
The sellers will be looking for a break out move below 1.2090 the confluence of the 50 SMA and the lower band of the ascending channel. This could negate the current uptrend and open the door to a deeper selloff towards 1.20 the 100 SMA.
Buyers will be looking for a break above 1.2150 the two month high struck yesterday below looking towards 1.22 the round number and upper band of the ascending channel.
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WTI ahead of Baker Hughes rig count
WTI has rallied over 4% so far this week on the improving demand outlook.
Optimism surrounding the re-opening of economies and rising demand expectations have overshadow the ongoing covid crisis in India and OPEC plus announcing that they will proceed with increasing output as planned on May 1st.
Baker Hughes rig count data is due later today.
Where next for WTI crude oil?
WTI crude oil has just fallen below the ascending trendline dating back to the start of the week, it also trades below its 20 HMA and below its short-term descending line from April 29.
The RSI is neutral around 50 although it attempting to pointing higher offering mixed signal.
Immediate support can be seen at 64.00 round number and 50 HMA ahead of 63.30 the high April 27.
On the flip side, a move back above the near term descending trend line at 6460 and the 20 HMA at 6470 would put WTI back in the ascending channel. From here the bulls could target 65.50 yesterday’s high.
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