Three months ago, the EUR/USD currency pair lost its optimal position, but today raised with a price of 1.1261.
The EUR/USD pair’s six-month bullish momentum was destroyed as a result of this position.
There are various explanations for this, one of which is the gross domestic product index on November 25, 2021.
The gross domestic product (GDP) is one of the major news that causes inflationary pressure in the German economy so its bad news does not allow the EURO to keep itself growing against the US dollar.
This month it updated its status with the negative figure of 2.5%, this is under the expectation of the economist but it also worsens than the previous month’s index, that why it badly affected the health of the German economy and also depreciated the EURO.
Germany’s GDP is a metric that measures the total value of all products and services generated in the country. The GDP is a comprehensive indicator of German economic activity and health. A positive impact on the euro is a high reading or a better-than-expected value, while a negative impact is a downward trend (or bearish).
We have seen the resistance in front of the price that could trigger the hurdle for its development in the future.
The technical bias might remain bearish for a while because the last upside price movement printed a lower high wave on the graph.