The Euro Makes A Moderate Recovery Ahead of GDP Data Release

• 7 Dec 2017

EUR/CAD

After a period of weakness the Euro has begun to gain strength over its North American counterpart. An increase in buying pressure for the pair has resulted in a moderate bullish move. As a result, the pair is now testing the 1.510 price level. A the same time the pair has also broken the 20-period EMA. Momentum indicators support bullish momentum with upward trajectories.

Impact event: Eurozone GDP data will be released at 12:00 GMT+2 and at 18:00 GMT+2 Mario Draghi will give a speech- both event will impact Euro pairs.

EUR/JPY

The EUR/JPY pair appears to be beginning a trend reversal after breaking the 20- period EMA to the downside. A bullish candle immediately after the break suggests the previous weakness in the Euro will not last. MACD has also broken the zero line to the upside and volume began to rise on the bullish move, indicating a shift to bullish momentum.

GOLD

Gold has suffered similarly to the Euro and has broken a recent market bottom at the 1266.85 price level. The metal has also broken the lower Bollinger band and RSI is approaching close to the 30 support level, indicating that Gold has entered into oversold conditions. Volume is steady and MACD is neutral having flattened along the zero line. A reversal on RSI would be required to signal the start of a bullish reversal.

EUR/JPY

Despite strong selling pressure, the EUR/GBP pair could not break the 0.880 and a bullish candle indicates that upward momentum may follow as the Euro recovers from a sell-off in mid-late November. RSI confirms bullish momentum and MACD remains neutral. Fundamental factors will likely continue to influence this pair.