Forex Trading: EURUSD coming off from the highs but supported by GDP this morning

The EURUSD has come off the highs from last night but remains supported at the 1.5470 area where the 100 hour moving average is looming.  This level willl be watched as support intraday.

Overnight, the EURUSD was boosted by much stronger GDP growth out of Germany.  The GDP for the 1st quarter came in at +1.5%, the highest quarterly growth since June 1996.  Much of the gains were attributed to a mild winter.  The expectation is that the growth will slow this quarter. 

The German growth helped the Eurozone growth rise by 0.7% for the quarter.  The expectation was 0.5%.  Note howver, that although Germany is strong, the rest of the EUROzone does not share the same strength.

Although analysts expect the growth to slow this quarter, the higher growth should be another reason for the ECB to remain on hold (inflation is still key).  This should be supportive to the EURO going forward. However, the market will continue to be focused on the day to day data as it comes out, and much also depends on the relative strength or weakness versus the other currencies (i.e. how the US economy performs). Much has been priced into the EURO over the last few years.