The EUR/USD pair is moving within a corrective trend at 1.0546 against poor macroeconomic reports.
On Friday, Q4 2022 data on the gross domestic product (GDP) was released: the indicator slowed down by 0.4% compared to the previous period, which was worse than analysts expected –0.2%, while the annual value fell to 0.3% from 0.5% YoY, confirming the negative trend in the economy, which is likely to enter into a recession soon. Today at 12:00 (GMT+2) the data on indexes of business expectations and sentiments in the manufacturing sector will be published, and the indicator of consumer confidence may reach –19.0 points, as well as a month earlier.
For the first time since the beginning of December, the American currency exceeded 105.000 in the USD Index, having started trading this week around 105.200. One of the main factors of positive dynamics was Friday's data on new home sales, which reflected a correction in January by 670.0K after 625.0K earlier against the forecast of a decline to 620.0K.
On the daily chart, the trading instrument continues its corrective movement, having returned to the recent ascending corridor with dynamic boundaries 1.0380–1.0810.
Technical indicators have given a sell signal: fast EMAs on the Alligator indicator are moving away from the signal line, expanding the range of fluctuations, and the AO histogram is forming downward bars, falling in the sell zone.
Resistance levels: 1.0600, 1.0740. | Support levels: 1.0480, 1.0320.