Talking Points:

• EUR/USD Rises on German GDP Data
• Daily Resistance is Found at 1.0669
• Looking for additional trade ideas for the EUR / USD ? Read our 2017 Market Forecast

The EUR/USD is trading back towards key points of daily resistance, after German GDP figures beat expectations this morning. German GDP (YoY) was expected at 1.8%, but released at 1.9%. This move has now led to a two day rally for the pair spanning 231 pips.

Technically the EUR/USD is trading higher, but quickly running into resistance. As seen in the graph below, the pair is currently testing a 61.8% Fibonacci retracement level found at 1.0669. This measurement has been found by taking the distance between the December 8th high at 1.0873 and the January 3rd low at 1.0340.

EUR/USD, Daily Chart with Fibonacci Resistance

If the pair remains below resistance, it may suggest that the EUR/USD is trading in an ongoing range. The Fibonacci line at 1.0669 runs firmly through a zone of resistance, which is comprised of a series of wicks on the daily chart. A turn near present prices may suggest that the EUR/USD may move back towards a zone of support found beneath 1.0400. Traders may reasonably expect this range to continue until a breakout is confirmed on the daily chart.

If a breakout does occur, traders may find initial bullish and bearish targets using a 1x extension of the identified range. Currently the range measures 344 pips from its support and resistance extremes. This means bullish targets may begin near 1.1028, and bearish targets at .9996.

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