The Euro (EUR) plunged against the US dollar (USD) on Tuesday, decreasing the price of EURUSD to less than 1.0650, following the release of some key economic news. The technical bias remains bearish because of the lower low and lower high in the recent downside move.

Technical Analysis

As of this writing, the pair is being traded around 1.0612. A support can be noted around 1.0600, a short term horizontal support ahead of 1.0500, the confluence of psychological number as well as critical support zone. A daily closing below the 1.0500 support area shall incite renewed selling pressure, validating a move towards the 1.0350 support zone.

On the upside, a hurdle can be noted near 1.0832, the confluence of trendline resistance area as well as 50% fib level as demonstrated in the given below daily chart. A break and daily closing above the 1.0832 resistance shall incite renewed buying interest, validating an upside rally towards the 1.0900 resistance zone.

Germany GDP

The German economy grew by 0.4 percent in the final quarter of 2016, data showed on Tuesday, as increased state spending, higher private consumption and construction in Europe’s biggest economy more than offset a drag from foreign trade. The growth figure for the final three months of 2016 came in slightly weaker than the consensus forecast in a Reuters poll of 0.5 percent. Still, it marked a sharp rebound after the German economy barely expanded over the summer months. The overall growth rate for 2016 was confirmed at 1.9 percent, which was the strongest rate in half a decade.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair on a daily closing above the trendline resistance appears to be a good strategy in short to medium term.