Although yesterday began with a slight weakening in EUR / USD, by the end of the day it was able to maintain its positions, thanks to the better-than-expected GDP of the euro area.
Until yesterday, it was assumed that the pace of economic decline in Europe accelerated from -3.1% to -15.0%, but the third assessment showed otherwise.
First, Q1 GDP contracted -3.2%, while Q2 GDP accelerated to only -14.7%. Such indicates that this indeed is the largest recession in history, but thankfully, the overall picture is actually a bit better than expected.
GDP (Europe):
As for the United States, today is a bit bleak with regards to macroeconomic news, and it is only at the end of the day that the US will publish its data on open vacancies. The forecast for this report is a slight increase from 5,889 to 6,000, which suggests that the unemployment rate in the country will continue to decline.
If we combine this factor with the current overbought status of the European currency, we will see that it is highly likely that EUR / USD will decline in the market today.
Job Openings (United States):
Thus, the pair is focusing below 1.1780, indicating the prevailing downward interest in the market. The potential for a decline is huge, but ahead is a strong resistance in the form of local low from August 21 (1.1754).
In addition, a slight slowdown in volatility is recorded, but this is probably just temporary.
The euro is still seriously overbought, according to the daily chart, and it seems that its bullish movement is beginning to slow down.
So, it can be assumed that if the price consolidates lower than 1.1754, EUR / USD will head to 1.1700, where, depending on the behavior of market participants, the subsequent move in the market will be clear.
Comprehensive analysis also show that the indicators of minute, hourly and daily periods signal sell, which reflects the general interest in the market.
