France first Quarter GDP fell 5.8% on year, vs -3.6% expected.

This morning, France’s INSEE has released first Quarter GDP at -5.8% on year, much worse than the -3.6% expected. March Consumer Spending fell 17.9% on month, vs -5.8% expected. April inflation rose 0.4% on year, vs +0.2% expected. Later today, the European Central Bank will announce its interest rates decision with a deposit facility rate expected unchanged at -0.5%.

From a technical point of view, EUR/USD is pulling back on a declining trend line in place since March and still stands below its 50-day moving average (in blue). The daily RSI remains within its selling area between 50 and 30. Readers may therefore consider the potential for further weakness below Apr. 14 top at 1.0990. The nearest support would be set at horizontal support at Apr. 23 low at 1.0725 and a second one would be set at set at March bottom at 1.0630 in extension.

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