FXStreet (Łódź) - FXStreet Chief Analyst Valeria Bednarik points out that EUR/USD is getting closer to the 1.3400 again on Thursday, despite the not very encouraging data releases.
"Early data coming from Europe failed to support the economy, as GDP readings in Germany and France came below expected, as well as EZ one resulted flat for Q2."
"Inflation was confirmed at 0.4% all of which points to a continued slowdown in the Euro area."
"The pair approaches 1.3400 with the 4 hours chart showing a strong acceleration above a flat 20 SMA currently around 1.3370, and indicators aiming higher, still below their midlines."
"Further advances above 1.3400 should face strong resistance in the 1.3430/40 price zone, with large stops above it. If this last get triggered, the rally could extend up to 1.3475/1.3500 price zone."
"At this point, the downside seems messy, with intraday lows all the way down to 1.3335: it will take a break below 1.3330 to confirm a bearish move, eyeing then 1.3295."