EUR/USD (current price: 1.0750)
German Import Prices grew by more than expected in the previous month, coming in at 1.9%, compared to the consensus estimate of 1.3%. The Eurozone M3 Money Supply was also a slight positive surprise, and the Euro had a bullish day after the releases. The U.S. GDP grew by less than expected while Durable Goods Orders declined unexpectedly in December. The pair rose back above the crucial 1.0685 support/resistance level on Friday, and it trades higher today in early trading as well.
Our assessment: The cross recovered quickly after the sharp drop on Thursday. Strong resistance is still ahead at 1.0850 with long-term support found at 1.05.
