Skerdian Meta • 2 min read
The advance US GDP number last Friday gave mixed signals. The GDP for the last quarter of 2014 was expected to increase 3.00%, but it only increased 2.6%. That gave a bearish sign to the US dollar traders and USD fell immediately after the release. On the other hand, the personal consumption which plays a very important part in the economy of the US increased. The GDP numbers for the third quarter were revised higher as well, from 3.5% to 5%.
So the sentiment turned to bullish about half an hour later when the market realized that the fourth quarter GDP number wasn´t that bad after all and it might be revised higher. That sent the Euro and GBP to the bottom of last week’s range against the US dollar, but it wasn´t enough to push below it.
EUR/USD has formed a wedge and we plan to trade the extremes as well as a possible breakout.
We have explained this trading strategy in our strategy section under “Wedges and Triangles”
Today the market
But we´ll be ready to trade the breakout of these ranges if it happens.