The German economy grew 0.4% in the previous year and is expected to show better performance in the current year of 2014. The euro zone is showing a good sign of recovery led by increase domestic demand. Strong domestic demand plays a vital role in the German recovery. In the year of 2013, GDP stretched by just 0.4% compared to 2012, the worst performance since 2009 – the lowest level for four years. In 2014, GDP is forecasted to grow by 1.2-2.0%. We can see investments by German companies going higher, which is a good sign.
In the currency front, EUR/USD is trading at the level of 1.3558. After making a new high in 2013 at the level of 1.3893 the pair went through correction. In the daily charts oscillators sign oversold indications, which lead to a pull back. But overall trend is down. The pair breaks the trend line and close below the trend line, the first sign of bearishness, prices trading below 21DEMA which adds more bearish views. Final confirmation of bearishness comes if prices close below 1.35, until pull back to resistance zones is possible.
Support- 1.3550 1.35
Resistance- 1.3620 1.365
The material has been provided by InstaForex Company – www.instaforex.com
The German economy grew 0.4% in the previous year and is expected to show better performance in the current year of 2014. The euro zone is showing a good sign
of recovery led by increase domestic demand. Strong domestic demand plays a
vital role in the German recovery. In the year of 2013, GDP stretched by just 0.4%
compared to 2012, the worst performance
since 2009 – the lowest level for four years. In 2014, GDP
is forecasted to grow by 1.2-2.0%. We can see investments by German companies going
higher, which is a good sign.
In the currency front, EUR/USD is trading at the level of 1.3558.
After making a new high in 2013 at the level of 1.3893 the pair went through correction. In the daily charts oscillators sign oversold
indications, which lead to a pull back. But overall trend is down. The pair
breaks the trend line and close below the trend line, the first sign of
bearishness, prices trading below 21DEMA which adds more bearish views. Final
confirmation of bearishness comes if prices close below 1.35, until pull back to
resistance zones is possible.
Support- 1.3550 1.35
Resistance- 1.3620 1.365
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