EUR/USD. May 25, 2021 | Euro is correcting after strong growth
The euro rate accelerated its growth on Tuesday, breaking through the upper boundary of the sideways trend 1.2150-1.2250. The European currency continues to be supported by the optimism of investors regarding the imminent recovery of global economies. And against this background, the demand for the «safe» dollar is declining, which is putting strong pressure on the American currency.
Additional support for the euro was provided by economic data from Germany. According to the final estimate of the country's Federal Bureau of Statistics, GDP in the first quarter of 2021 declined by 1.8% against a projected decline of 1.7%. On an annualized basis, the GDP of Europe's largest economy fell 3.4%, while experts had expected a decline of 3.3%.
The index of business expectations in Germany in May rose to 102.9 points (from 99.2), the forecast assumed the indicator at the level of 101.4 points. The business climate index was 99.2 points (forecast – 98.2 points).
However, the RSI indicator bounced off the resistance area, which signals a weakening of the euro and the return of the EUR/USD pair to the range of 1.2150-1.2250.
The euro rate accelerated its growth on Tuesday, breaking through the upper boundary of the sideways trend 1.2150-1.2250. The European currency continues to be supported by the optimism of investors regarding the imminent recovery of global economies. And against this background, the demand for the «safe» dollar is declining, which is putting strong pressure on the American currency.
Additional support for the euro was provided by economic data from Germany. According to the final estimate of the country's Federal Bureau of Statistics, GDP in the first quarter of 2021 declined by 1.8% against a projected decline of 1.7%. On an annualized basis, the GDP of Europe's largest economy fell 3.4%, while experts had expected a decline of 3.3%.
The index of business expectations in Germany in May rose to 102.9 points (from 99.2), the forecast assumed the indicator at the level of 101.4 points. The business climate index was 99.2 points (forecast – 98.2 points).
However, the RSI indicator bounced off the resistance area, which signals a weakening of the euro and the return of the EUR/USD pair to the range of 1.2150-1.2250.