What happened: The EUR/USD appears to be breaking out as traders wait for the second reading of the US GDP data that will come out in the
afternoon session. Economists expect the data to show that the American
economy expanded by 4% in the fourth quarter after soaring by 33% in
Q3. Still, since this is the second reading of the data, analysts don’t
expect any significant moves on the EUR to USD pair.
Meanwhile, the European Commission will publish the latest consumer and business sentiment data. Economists expect these numbers to
show that the overall sentiment improved in February as the number of
coronavirus cases started to fall. Other important numbers that will
come today are durable goods, jobless claims, and pending home sales
numbers.
EUR/USD technical outlook
The four-hour chart shows that the EUR to USD price is on the verge of a bullish breakout after days of consolidation. The pair is
trading at 1.2180, which is the highest it has been since January
25. Therefore, by breaking out, it sends a sign that bulls are
prevailing, which will see them target the next resistance at 1.2200.
This is close to the 61.8% Fibonacci retracement level. However, a drop
below 1.2150 will send a signal that there are still sellers in the
market.
