EURUSD reaches critical hourly resistance following the US GDP

EURUSD rose as the US GDP came in below expectations. There were speculations on Thursday the US GDP may come in around 5.0%. The recent gains in EURUSD appear to be merely corrective as the price nears its current resistance. Failure to post an hourly close above the resistance may lead to corrective weakness in the pair. Likewise, should the price break above the initial resistance the latter resistance (in dark blue) may cap the gains. Only a firm break above the latter resistance (dark blue) may invalidate the short entry and suggest further gains are in store.

Do note this is an hourly time frame rather than a long-term strategy.

Comment:

As we near the hourly close EURUSD is attempting to close above the latter resistance. An hourly close above the resistance may affirm further gains are in store, targeting 1.1670.

Following the hourly close above the latter resistance the price may re-test 1.1640 before correcting higher.

Trade closed: target reached:

EURUSD reached our target of 1.1670 following the breakout (current high is 1.1673 at the time of this writing). EUR was boosted as the German States CPI figures are coming in.