EUR/USD tried to turn bearish in Q1 of this year, after being quite bullish since last March, as the USD kept declining.  This pair reached 1.2350s at the top in early January, while at the bottom the price fell to 1.17 lows.

Although, the USD decline resumed again in April and this pair reversed back up. During the decline moving averages were doing a great job as support on the H4 chart, while now they have turned into support, with the price bouncing off the 100 SMA (green) last Friday.

Today, the Q1 GDP report was released from the Eurozone, with expectations of a 0.6% contraction, after the contraction in Q4 of last year. So, the Eurozone fell in recession again for the second time in less than a year, but EUR/USD continues to move higher nonetheless. Below is the GDP reading for Q1 of 2021.

Latest data released by Eurostat – 18 May 2021

This is similar to the initial estimates so there isn’t much to gather from the release above. The fact is that the continent was in another recession in the last two quarters, but that’s history now, since we are in the middle of Q2, which looks quite good as the economy reopens.