Euro to Break 1.15?

Euro to Break 1.15?

Euro to Break 1.15?

It has been a great week for EUR/USD, which appreciated every day this past week with the latest gains supported by stronger GDP numbers. The Eurozone economy expanded 0.6% in the first quarter, which was better than expected and two times faster than the pace in Q4. Investors shrugged off the weakness in other releases including a larger decline in Eurozone consumer prices and big drop in German retail sales. Consumer spending in Europe’s largest economy has been exceptionally weak this year with annualized sales gains slowing to 0.7% in March from 5.5% in February. These low readings raise concerns about Europe’s recovery especially going into the uncertainty that Brexit could have on the region. The Eurozone is light on data next week so Draghi’s speech will be the main focus and of course U.S. data will also have a significant impact on the pair.

Technically while EUR/USD broke above 1.1400 today, the main resistance is at the April high of 1.1470. Above there, the pair will still have to contend with 1.1500 psychological resistance but beyond that, it should be smooth sailing to the 2015 high near 1.1700.

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