Euro Rises as Eurozone Economic Data Supports ECB's Current Stance

The euro received a boost from positive Eurozone economic data, pushing the pair to a six-day high of 1.0625. The European Central Bank (ECB) is likely pleased with Germany's economic performance, as the third-quarter contraction was milder than expected at 0.1% quarter-on-quarter, compared to the projected 0.3%. Additionally, prior figures were revised upward, ending the technical recession from Q4 2022/Q1 2023. Preliminary data indicates that annual inflation in October decreased from 4.5% in September to 3.8%, falling below the expected 4%. More German data, including Retail Sales, is set to be released. Eurostat will also provide the Eurozone Harmonized Index of Consumer Prices and GDP data.

These developments support the expectation of the ECB maintaining its current stance. Meanwhile, the Federal Reserve (Fed) is expected to keep rates unchanged as it starts a 2-day meeting, despite strong economic performance, including a tight labor market and over 4% annualized GDP growth in Q3. Essential US data releases throughout the week will impact the US Dollar's momentum, which weakened due to improved risk sentiment on Monday.

EUR/USD is higher today where the next resistance level is at 1.0700. a possible reversal may occur if it breaks the 1.700 resistance level.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.0930	1.0800	1.0700	1.0630	1.0500	1.0400