EURUSD looks to recover from the recent drop in price. This I believe is due to the recent good news from Euro’s leading economy Germany. Germany escaped from recession when it posted a GDP growth of 0.1% in Q3. With this result, it did not suffer 2 quarters of economic squeeze. Germany also revised its Q2 result where a -0.2% contracted was revised to -0.1%. The year on year economy grew 1.2%. 0.2% more than the expected 1%.
France also reported better than predicted growth rate of 0.3% in Q3. This data however was marred by a downward revision of Q2’s data.
These news managed to pull eurusd up. However I am still bearish on the eurusd as the overall fundamentals are still gloomy. With US registering its highest QUITS (number of workers quitting their jobs) since April 2008 which is a sign of confidence in the economy, I believe any move up in the eurusd is a temporary reprieve.
I would look at bearish price action to sell the eurusd at these mentioned levels:
Level 1 – 1.2807, Level 2 – 1.2946 and Level 3 – 1.3085