EUR/USD drifting around 1.2350 ahead of European markets

The Euro is backing away from session highs on thin action, currently trading close to the 1.2350 handle.

The EUR/USD is sifting lower against the US Dollar heading into European markets, and the macro calendar is looking thin for the Euro, at least until GDP figures for the Eurozone drop at 10:00 GMT on Wednesday. The Euro has lifted against the Greenback for three consecutive trading days, with markets shaking off President Donald Trump's latest trade tariff threats last week, with traders running on the assumption that Congress, key business leaders, and foreign officials talk Trump down from his latest threats. Trump has staunchly dug his heels in with enflaming comments showing a willingness to engage in outright trade wars, but cooler heads are expected to prevail and the EUR/USD continues to float near multi-year highs.

The pair is unlikely to make any meaningful headway in either direction with the price spiraling around the 34 EMA recently, but European Union GDP numbers could spark a new run in either direction if the numbers miss expectations too far to the upside or down. Median forecasts for the EU GDP numbers show an expected 2.7% increase for year-on-year, with quarter-on-quarter forecasts at 0.6%. Both figures hold steady with the previous readings, as analysts anticipate a slight contraction in growth for the final quarter of the reporting period for the second year running. These are also non-preliminary numbers, so the actual should come in very close to the forecast.

EUR/USD Technicals

The pair is still holding deeply in bullish territory, and technical indicators have returned to their midpoints with little drop in the pair to show for it. H4 charts have the EUR/USD trading into the 50.0 Fibo level at 1.2353. Intraday support is coming from 1.2270 and 1.2185, with resistance at 1.2390 and 1.2435.