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28 Feb 2013
Forex: EUR/USD steady after US GDP
The euro held pretty steady versus the dollar after a report showed US GDP grew by 0.1% in the fourth quarter, a reversal from an initial report of contraction revision, but remained below expectations. Meanwhile, separated data showed US initial jobless claims fell more than expected last week.
EUR/USD barely reacted to the data and continues to trade around 1.3130, where it is virtually unchanged since opening.
From a technical view, Valeria Bednarik, chief analyst at FXstreet.com commented: "There is a congestion zone around 1.3150/60, that converges with the 50% retracement of the latest bearish leg, so price needs to settle above that area to be able to extend the upward corrective movement, with 1.3220 and 1.3280 area then at sight".
"A daily descendant trend line coming form 1.3710 lies today around 1.3280/90, so I would expect the bearish trend to resume if the level is reached", said Bednarik.
EUR/USD barely reacted to the data and continues to trade around 1.3130, where it is virtually unchanged since opening.
From a technical view, Valeria Bednarik, chief analyst at FXstreet.com commented: "There is a congestion zone around 1.3150/60, that converges with the 50% retracement of the latest bearish leg, so price needs to settle above that area to be able to extend the upward corrective movement, with 1.3220 and 1.3280 area then at sight".
"A daily descendant trend line coming form 1.3710 lies today around 1.3280/90, so I would expect the bearish trend to resume if the level is reached", said Bednarik.