Trade points to slower GDP
The EURUSD has moved higher (dollar lower) after the worse than expected trade deficit. The larger deficit points toward a lower GDP for Q1. The Atlanta Fed GDP tracking was last reported at +0.7% for Q1 (on April 1).
For the EURUSD the 100 hour MA is at 1.1371 while the broken trend line comes in at 1.13728. The price has moved above and extended up to 1.1380. The pair closed at 1.1386 (which was close to Friday's close too). The low today stalled at the mid March swing high at 1.1341 and bounce. Looking at the daily chart below the pair remains above the broken trend line (underside of broken trend line is 1.1323 today). ON the topside on the daily chart, getting above the 1.13425-65 area is a target area (old swing high area).
Earlier today the German Factory orders were weaker as was the service PMI for Europe. That helped pressure the pair. It just could not get the price below the next support levels. So it stalls and goes back up. Will the resistance become support now? It is supposed to. Get above 1.1386 area. and then the 1.1411 level will be eyed above. This was the swing high from last Thursday and the yesterday.
