The Euro continues to ride the wave of a dovish Federal Reserve and is on track to rack up its 5th straight day of gains in todays European trading session, and now the focus will be on the release of key economic data from the Eurozone namely the GDP figures from Germany and CPI numbers from the Eurozone
There has been a few question marks regarding the state of the German economy after the severe damage it was dealt on the back of the coronavirus, so today’s news will be closely monitored to see weather Europe’s biggest economy is on the road to recovery or there is still more pain to come.
The CPI figures from the Eurozone will also be closely monitored by the market for signs of any improvement in consumer confidence which is vital for the Euro block to get back on track economically.
A good set of figures from Germany and the Eurozone should keep the Euro well supported and see the currency finish the week on a strong note.
From a technical perspective, the Euro is in great shape and in yesterday’s trading session it managed to break through the critical resistance level of $1.1881 which it last hit around 20 days ago.
In today’s trading session it is now acting as a support level and as mentioned earlier, if we see a good set of figures from Germany and the Eurozone later today, the next resistance level of $1.1936 will be in focus And the Euro/USD currency pair is likely to make a run towards this level.