The Euro is trading extremely flat in today’s early afternoon session. This shows lack of volumes and the indecision between the bulls and the bears. The EUR/USD has formed support line near $1.24151 and currently is experiencing resistance on the upside at around $1.24445.
Although, there was some positive news, the Euro continues to trade under pressure. According to today’s report, Germany narrowly avoided entering into a recession as the country’s GDP grew by a marginal 0.1 percent, which has economists breathing a small sigh of relief. This comes a day after a surprisingly better than expected German Ifo Business Confidence report beat economists’ estimates. With these two reports, analysts are starting to feel a tad more confident about Germany’s short-term growth prospects.
Traders and investors should closely pay attention to today’s upcoming U.S. Preliminary GDP report and the U.S. Consumer Confidence Index scheduled for 14:30 and 16:00 GMT respectively. Positive results should perhaps give the Fed an incentive to raise the interest rates sooner rather than later. Of course an interest rate hike should be incredibly beneficial for the USD.
When looking at the hourly chart for the EUR/USD, the currency pair continues to trade in a very narrow range. Most analysts believe that narrow range will continue until the aforementioned economic reports are released. The EUR/USD’s momentum indicators are starting to display sell signs. Additionally, its relative strength index is providing a sell signal indicative of the shift of momentum towards the sell side.
Short the EUR/USD at current levels with a stop-loss above $1.24708, for an intermediate target at $1.21250.