EUR/USD flirts with daily highs near 1.0820 post-German GDP

• EUR/USD moves higher and tests the 1.0820 region on Friday.
• German flash Q1 GDP expected to contract 2.2 QoQ.
• EMU’s preliminary Q1 GDP figures next of relevance.

The single currency has regained some composure and is now lifting EUR/USD back to the positive territory in the 1.0815/20 band, or daily highs.

EUR/USD now looks to EMU, US data

EUR/USD is reversing two daily pullbacks in a row on Friday, regaining some poise after German economy is seen contracting at a quarterly 2.2% during the January-March period. On this regard, German Economy Minister Peter Altmaier said a deeper contraction is expected in the second quarter.

Later in the session, flash Q1 GDP figures in the broader Euroland is due, whereas Retail Sales, the Empire State index and the preliminary gauge of the Consumer Sentiment will be all published in the US calendar.

What to look for around EUR

EUR/USD remains entrenched into the negative ground so far this week, although a sustainable breakdown of the 1.0800 mark still remains elusive. Poor results in domestic fundamentals plus dollar strength have been behind the leg lower in the pair in past sessions, while the negative effects of the coronavirus outbreak have started to emerge in the region and are expected to keep weighing on the currency in the next months. In the meantime, the solid position of the current account in the euro area coupled with the gradual re-opening of the economy in the region keep a deeper pullback somewhat contained for the time being.

EUR/USD levels to watch

At the moment, the pair is gaining 0.09% at 1.0814 and a break above 1.0896 (weekly high May 13) would target 1.0940 (55-day SMA) en route to 1.1019 (monthly high May 1). On the other hand, immediate contention emerges at 1.0774 (weekly low May 14) seconded by 1.0727 (monthly low Apr.24) and finally 1.0635 (2020 low Mar.23).