The EUR/USD has staged a strong recovery move since the Asian session, gaining over 60 pips as it moved from an intraday low around 1.0430 to a three-day high at 1.0492.
The pair is benefiting from a best sentiment on the market, also favored by hopes of a rate hike by the European Central Bank in early summer. The DXY index that measures the dollar falls for the second day in a row, currently reaching 103.65, minimum of six daysafter hitting a two-decade high on Friday at 105.01.
Today the preliminary Gross Domestic Product (GDP) of the Eurozone for the first quarter of 2022 has been published, showing a growth of 5.1% year-on-yearone tenth above the 5% estimated by the market, and half a point more than the 4.6% in the fourth quarter of 2021. Quarter-on-quarter GDP rose 0.3%, matching the previous quarter and improving by one tenth the forecast 0.2%, according to Eurostat reported.
Traders now await data from United States retail sales for the month of April, since it could cause the price of the dollar to vary. Later, speeches by Christine Lagarde, president of the ECB, and Jerome Powell, her counterpart at the Fed, may generate new volatility in the markets.
EUR/USD Levels
With the pair trading at time of writing above 1.0478, gaining 0.40% daily, the next resistance to overcome is the psychological level 1.0500. If you overcome it, the next barrier awaits around the levels 1.0590/1.0600, where the maximums of May 6 and 9 are. Above, the goal is 1.0641ceiling of May 5 and of the last three weeks.
On the downside, a loss of 1.0400 would mean that the pair may fall to the five-year low reached on May 13 in 1.0349. To break this last level and 1.0340floor of January 6, 2017, the decline could extend to parity.
Source: Fx Street
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