GDP disappoints but trend line holds
The GDP disappointed at 0.2% vs 0.4% last night (in the new trading day), and the price moved to yet another new low. It also fell below the 0.7000 level 1st time since April 2009. The low extended to 0.69778.
Looking at the daily chart, the decline approached a key trend line. That line comes in at 0.6969 today. Close enough I guess.
The price is moving a bit higher. The price has also found more support buying at the 0.7000 level (see 5 minute chart below. The price has been chopping around but is trying to explore back above the 100 and 200 bar MA on the 5 minute chart (blue and green line).
The move is purely technical. So with such a move, traders will want to see things like the 100 and 200 bar to hold support. If it does not, I would expect another run/test of the 0.7000 level. The first targets become the highs for the day (0.7046 is the high for the day). .
