On Tuesday, the euro was blocked by a Reuters message for euro buyers and the major pair closed lower. However, rumors that representatives of the ECB doubt the growth of the eurozone economy could not change the mood of market participants. On Wednesday, the quotation of euro/dollar pair returned to the level of $1.1314. Growth took place against a background of risk-taking after the release of good data on industrial production and China's GDP. Once again, everything broke down. The euro currency failed to pass the resistance level of $1.1324.
But what happened? Why did the next attempt fail? The published CPI report coincided with the market forecast and almost did not affect the dynamics of the euro/dollar pair. The eurozone also released data on the trade balance for February, which showed a surplus growth of 17.9 billion euros.
On Wednesday, another confirmation came that the business of the leading locomotive of the European economy is getting worse and worse. For the second time since the beginning of the year, the German government has severely cut the assessment of the country's economic growth for the current year. The adjusted forecast assumes that German GDP will grow by a negligible 0.5%. Meanwhile, the first month of the year was about raising GDP by 1% and its fall by 1.8%. Market participants were reassured by the fact that the economy does not need to be stimulated.
A positive for the euro came from the leadership of the ECB. Austria's central bank governor, Ewald Novotny, reported on Wednesday that the regulator's forecasts are unlikely to worsen its growth in the region. As before, the economy is expected to stabilize in the second half of the year.
Nevertheless, the situation is as follows: the euro fell to $ 1,1298. The rollback turned out to be deep, hence, buyers will have to really try to get back to the level of $1.1324 on Thursday. The rise in the price of the major pair above $1.1315 will reinforce the "bullish" trend. Then, you can take advantage of the $1.1363 mark.
The material has been provided by InstaForex Company - www.instaforex.com