FX.co ★ Technical analysis of EUR/USD for 22.01

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