EUR/USD – Trendline support being put to test

EURUSD D1 (02-26-2016 1949).png

Above is the daily chart, which shows the pair is flirting with the trend line support. The upward revision of US Q4 GDP was a surprise and hence resulted in USD strength.

But note down the following

  • consumer spending was revised lower
  • and an upward revision was mainly due to change in inventory valuation method

Hence, the losses in EUR/USD are largely due to uptick in core PCE and not the GDP. This also means the losses could be undone quickly if the upcoming personal spending number disappoints market expectation.

 

 

 

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