EURUSD is trading 0.12% higher at 1.1112 after Germany Gross Domestic Product (quarter over quarter ) came in at -0.1 matching analyst’s forecasts in 2Q, 2019, the yearly reading also matched forecasts of 0% in 2Q. In France, the Consumer Confidence came in at 102 topping expectations of 101 in August, while Business Climate came in at 102 also above expectations of 101 in August. EURUSD consolidates around 1.11 as bears are still in control as the pair trades below all the major daily moving averages, but in the hourly chart, the bulls are gaining momentum as the pair trades above the 50 and 100-hour moving averages. On the upside, immediate resistance stands at 1.1163 yesterday’s high and then at 1.1204 the 50 day moving average, a break above can lead prices up to 1.1282 the 200 day moving average. The pair will meet support at 1.1097 the daily low and then at 1.1051 the low from August 23rd, before an attempt to 1.1026 yearly low.
Intraday traders might enter a long position if the pair manages to break above the 1.1114 today’s top targeting a break above 1.1163. A stop loss at 1.11 must also be placed for reducing the downside risk as that will signal possibly a move down to 1.11 area.
A short position targeting the YTD low may be initiated if the pair crosses below 1.11, with a stop-loss order at 1.1114. All in all, bears are in control and if EURUSD breaks below 1.11 the downward move might accelerate down to 1.1026 yearly low and then at 1.0950.