EURUSD

EUR/USD forecast: Bulls Must Defend this Level First

The EUR/USD is wavering ahead of the important EU GDP and German conditions numbers that will come in the morning session. The EURUSD is trading at 1.2135, which is slightly below the intraday high of 1.2150.

EUR/USD news: The EUR/USD will today react to the next estimate of the EU GDP data by Eurostat. Data by the statistics agency is expected to show that the EU economy contracted by 0.7% in the fourth quarter leading to an annualised decline of 5.1%. This contraction is mostly because of the weak performance in December when the second wave of the virus started to spread in Europe.

The EURUSD price is also wavering as traders watch out for the stimulus deliberations in the United States. Economists believe that Congress will pass a $1+ trillion stimulus package by the end of the month. Such a package will be bearish for the US dollar.

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EUR/USD forecast

The EUR to USD price soared to a high of 1.2150 earlier today where it has found some resistance. This price is notable because it was also the highest point on February 11. The pair has formed a double-top pattern whose neckline is at 1.2082, which is 0.60% below the current price. 

Therefore, at this point, the pair has two potential options. First, it could cruise above the resistance at 1.150 as bulls eye the next level at 1.22200. Second, the pair EUR/USD price could decline as bears attempt to retest the neckline at 1.2082.

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EURUSD technical chart

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