Two trades to watch EURUSD WTI crude oil

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.

Learn more about trading forex

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 1^st.

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.

Learn more about factors which move oil prices.

The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Products and services available depend on your location and the entity holding your account. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to FOREX.com or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.

FOREX.com is a trading name of GAIN Global Markets Inc. which is authorized and regulated by the Cayman Islands Monetary Authority under the Securities Investment Business Law of the Cayman Islands (as revised) with License number 25033.

FOREX.com may, from time to time, offer payment processing services with respect to card deposits through StoneX Financial Ltd, Moor House First Floor, 120 London Wall, London, EC2Y 5ET.

GAIN Global Markets Inc. has its principal place of business at 30 Independence Blvd, Suite 300 (3rd floor), Warren, NJ 07059, USA., and is a wholly-owned subsidiary of StoneX Group Inc.