EUR / USD moved higher amid strong German GDP data

Frankfurt conference is in the focus of market’s attention right after German GDP data. Leaders of world central banks hopefully will present details on monetary policies thus significantly increasing volatility. However, this meeting may disappoint the market, if no new relevant data revealed. Yellen's term is coming to an end, and she is unlikely to shed light on plans for further implementation of the monetary policy of the US Federal Reserve. Draghi also delivered a speech and after the ECB meeting two weeks ago and last week, so it's also unlikely to say anything new. Therefore, it is rather difficult to predict the degree of influence for the market in advance.

In addition to the conference, we expect a large news block both from the US and from Europe. The EU will publish data on GDP for the third quarter, industrial production, etc. In the United States, investors will be interested in data on producer price index. And do not forget about the tax reform in the US. The issue remains unresolved and any news on this matter can significantly stir up the market. On the market chart, we see increased activity from market participants. The resistance level is 1.1660 is broken, the one which limited the upward impulse for a long time. New targets for growth are clear, levels 1.1780 and 1.1840. Recommendations: priority is given to longs on the price pullbacks. The nearest support level is at 1.1655. The first target is at the level of 1.1780, the medium-term target is at 1.1840.

Fort Financial Services