EUR/USD Trade Alert: US GDP Dip a Buying Opportunity with Eyes on 1.1500

EUR/USD showed a minor pullback after US GDP data.  It hit an intraday high of 1.13233 and currently trading around 1.13221.

The U.S. preliminary GDP for Q1 2025 revealed a 0.2% contraction, a little upward revision from the first 0.3% drop, mostly as a result of rising imports and falling government expenditure, somewhat countered by increases in investment, consumer spending, and exports. Though actual final sales to private domestic customers increased 2.5%, this signals the first quarterly GDP drop since early 2022.

Technical Analysis of EUR/USD

The pair is holding above the short and long-term moving average in the hourly chart. Near-term resistance is seen at 1.1365; a break above this may push the pair to targets of  1.14250/1.1500.  Major bullish momentum is likely only if prices can break above the 1.160 target of 1.1660. On the downside, support is seen at 1.12650 any violation below will drag the pair to 1.1200/1.1150/1.1090/1.1050/1.100.

Market Indicators and Trading Strategy

Commodity Channel Index (CCI)-  Neutral

Average Directional Movement Index (ADX) - Neutral

 It is good to buy on dips  around 1.1305-58 with a stop-loss at 1.1260 for a  target price of 1.1418/1.1500.