After the release of the gross domestic product, the Euro (EUR) eventually managed to break through the resistance levels and started to recover against the US Dollar. Amid a bearish pattern in recent months, it is now climbing up to cross the number around 1.1000.
The Statistisches Bundesamt Deutschland published the Gross Domestic Product, a calculation of the total value of all goods and services produced by Germany. GDP is viewed as a large measure of economic activity and wellbeing of the economy. A high reading or a number that is better than expected has a positive effect on the EUR, while a downward trend is seen as negative (or bearish).
Currently, the pair is being traded around 1.1081 having crossed two of the immediate hurdles successfully including the major horizontal and trendline resistance already. It seems that the pair will break through the resistance levels and rise up.
The news of the Gross Domestic Product shows a better economic condition for the pair with a reading of 0.5 percent compared to the previous month’s 0.3 percent. The reading remained the same as the market leaders ‘ consensus.
On the other hand, the Germany consumer price index, the key proxy for calculating inflation and changing purchasing habits, showed a positive reading adding to the EUR bullish trend.
Trading EURUSD for a short term position can be profitable but opening a long term position might not work.