EUR/USD: volatile on news
EUR/USD is down to $1.3660, the lowest levels since February. The expectations of more ECB easing in June are putting the single currency under pressure. Euro fell as Spanish press wrote that the ECB will be cut the deposit rate to -0.25% citing no official sources though, so the bulls do have the chance to strike back.
The focus is obviously on the euro zone’s GDP due at 09:00 GMT (forecast: +0.4% vs. the previous reading revised down to +0.2%). If we get +0.4%, this would be the highest growth rate since the beginning of 2011. The revised inflation figures are also due at this time.
Support is at $1.3650 and $1.3620. Resistance is at $1.3720, $1.3750 and $1.3770. At H4 the pair’s oversold and we see some divergence.