When is the German GDP release, and how could it affect the EUR/USD?
German preliminary GDP overview
The preliminary reading of Germany's Gross Domestic Product (GDP) hits markets early Tuesday at 06:00 GMT. Market forecasts are calling for a slight contraction in the headline quarter-on-quarter figure, from last quarter's 0.6% to the current period's 0.4%. A decline in the year-on-year figure from 2.3% to 1.7% is also expected. Worse-than-expected contractions in the growth figures for Europe's largest economy, and the manufacturing heart of the European Union, do not bode well for Euro bulls.
How could it affect the EUR/USD?
The Euro is heading into Tuesday on a weak note after failing to regain the 1.20 major handle in the last recovery from 1.1822, and although the pair's technical outlook remains on the bullish side according to FXStreet's own Valeria Bednarik, a miss for the key GDP numbers could end a recovery in short order: "the short-term picture is still positive for the pair, although the recent break below 1.1960, the mentioned Fibonacci level, limits chances of a firmer advance. In the 4 hours chart, the pair continues developing above a bullish 20 SMA, now around 1.1915, while technical indicators retreat from overbought readings, but remain within positive levels. The mentioned 20 SMA is the immediate support, while to the upside, the 1.2000 figure is key, as a break above it exposes the 1.2050/60 region, where the pair has a bearish 100 SMA in the mentioned time frame and the 38.2% retracement of the mentioned decline."
Support levels: 1.1915 1.1880 1.1840
Resistance levels: 1.1960 1.2000 1.2035
Key notes
EUR/USD analysis: dollar get's some love in the US afternoon
EURUSD: Sell @ 1.2000
About German preliminary GDP
German Preliminary GDP, which is released every quarter, is a measurement of the production and growth of the economy. Analysts consider GDP one the most important indicators of economic activity. A reading which is better than the market forecast is bullish for the euro.