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EURUSD Shows Slight Growth

12/8/2022 12:42 PM

The EUR/USD pair is correcting around 1.0525, strengthening after yesterday's publication of positive macroeconomic statistics in the euro area.

Thus, according to November data, the growth of Q3 gross domestic product (GDP) amounted to 0.3%, which exceeded analysts' expectations of 0.2%, and the annual rate slowed to 2.3% from 4.2% earlier, according to preliminary estimates at 2.1%, helped by an increase in employment by 0.3% from an estimated 0.2%. Thus, employment in the region increases by 1.8% YoY and leads to an increase in the overall level of the indicator to 164.499K from 164.475K a quarter earlier.

Another reason for the positive dynamics of the trading instrument is the US dollar, which has recently demonstrated neutrality, consolidating around 105.000 in the USD Index. The new macroeconomic statistics have either already been taken into account by the market or coincide with experts' expectations, which does not allow it to influence currency quotes. Thus, according to yesterday's report, the rate on 30-year mortgage loans from the Mortgage Lending Association (MBA) amounted to 6.41%, having slightly decreased from 6.49% earlier but remained at a high level, which hinders the growth of the housing market: the index of applications for home purchases on mortgage fell to 175.5 points from 181.0 points earlier.

On the daily chart, the trading instrument continues its corrective growth and is confidently holding above the resistance line of the local ascending corridor.

Technical indicators maintain a stable upward signal: fast EMAs on the Alligator indicator expand the oscillation range upwards, and the AO oscillator histogram forms new bars, rising in the buying zone.

Resistance levels: 1.0590, 1.0780. | Support levels: 1.0440, 1.0240.

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