The exhaustion of sellers before the US GDP

• The EUR / USD pair unveiled Thursday a round-bottomed candle.
• This candle of exhaustion of the seller suggests a possibility of increase to 1.12.
• A better-than-expected US GDP could generate a widespread rise in the USD.

The EUR / USD market is showing signs of sellers' exhaustion, ahead of the key figures of US economic growth in the second quarter.

The currency pair unveiled a round-bottomed candle on Thursday. This candlestick pattern is widely regarded as a sign of indecision on the market.

However, in the case of the EUR / USD pair, the trough of the wave appeared at its lowest level in two years and as a result of the sale of the highest higher at 1.14.

So it seems safe to say that the trough of the wave represents indecision among the bears or the seller's exhaustion and that the common currency could reach 1.12 if US data disappoint expectations.

Focus on US GDP

The Bureau of Economic Analysis will release its first estimate of annualized GDP for the second quarter at 12:30 GMT today.

The data should show that the economy grew 1.8% in the second quarter, after rising 3.1% in the first three months of the year.

A better-than-expected figure could force markets to reduce their expectations of aggressive Fed easing, which would cause the US dollar to rise. In this case, EUR / USD could fall below 1.11.

If the data are lower than estimated, the markets will anticipate further rate cuts by the end of the year, which will raise the EUR / USD to a level above 1.12, as suggested by the round bottom.

At the time of writing these lines, the pair is trading pretty much unchanged the day at 1.115. The German import price index, which is expected to be published at 06:00 GMT, could be ignored by investors unless this figure is far above the estimates, in which case the single currency could feel the same. weight of gravity.

Technical levels