technical analysis of currencies; The euro rose during trading today, Friday, as a result of the high inflation expectations in the European market and the decline in the US dollar index, after the decline in the growth of the US economy during the first quarter.
The actual reading of the European CPI for the month of April came by 1.2% from 0.7%, and the core index rose by 1.2% to reach its highest level in three years, and the previous reading was 0.7%
Yesterday, the euro witnessed a decline, at the conclusion of the European Central Bank meeting, and Draghi's statements that it was too early to talk about the impact of withdrawing the stimulus program.
It opened today's session at the level of 1.0867 for trading the euro-dollar, and the highest level was recorded at 1.0948, while the lowest level was recorded at 1.0858.
A decline in the US economy during the first quarter
The US dollar index fell during trading today, Friday, after the US economy announced the gross domestic product data, which came worse than expected.
The US Commerce Department announced today that gross domestic product rose at an annualized rate of 0.7% after cutting spending on the Department of Defense to the lowest reading since the first quarter of 2014.
The growth of the US economy rose 2.1% during the last quarter of 2016, and Reuters polled some analysts who expected GDP growth to 1.2% in the last quarter, but the poll was conducted before the release of preliminary data on Thursday about the goods trade deficit for the month of March, which led Regression to growth forecasts for the first quarter of this year
Consumer spending growth declined during the first quarter to 0.3%, the lowest reading since the last quarter of 2009
EUR/USD technical analysis EURUSD
The pair witnessed a state of fluctuation as it traded between the zero and 23 Fibo lines, as the price rebounded towards the downside after it failed to breach the resistance level as shown in the graphic
The trades are now taking place at the moving average indicator line, and both Stochastic and MACD are showing a negative crossover towards the bearish trend on the four-hour time frame.
Therefore, the price is expected to continue declining, targeting 1.0860 in conjunction with the presence of the support level