Mixed Fortunes For The Euro Ahead Of GDP Data

• 2 May 2018

EUR/GBP

The EUR/GBP pair has broken a key resistance area at the 0.878 price level and is heading towards the 0.886 price level. At the same time, MACD has broken the zero line to move into positive territory and RSI has a strong upward trajectory.

Impact event: Eurozone GDP data will be released at 12:00 GMT+3 and will impact all Euro pairs.

EUR/JPY

The EUR/JPY pair has broken the 20- period EMA, which has been acting as a support level since the beginning of April. Momentum indicators support bearish sentiment with downward trajectories and MACD is approaching the zero line. A break of the 131.56 price level is required to confirm the downtrend.

EUR/USD

The EUR/USD pair appears to be recovering from a significant sell-off. A bullish candle to start today’s session may be the first indicator, along with a momentum reversal on RSI. However, a break of the lower Bollinger band and the 30 support level on RSI will be required to confirm a trend change.

Impact event: The FOMC Rate decision will be announced at 21:00 GMT+3 and will impact all U.S. Dollar pairs.

AUD/CAD

The AUD/CAD also appears to be recovering from Australian Dollar weakness. RSI is showing signs of wavering bearish sentiment and buyers appear to be returning. Again, a break of the lower Bollinger band and a candle closing above the 30 support level on RSI are required to confirm the reversal.