The Euro shows strong support, trading just above yesterday’s low. Germany’s final GDP for Q1 was revised to a 0.4% increase, which is higher than both the initial estimates and market expectations. This positive news has helped the Euro climb out from the low 1.13 range. Recent gains indicate a potential bullish breakout from earlier downward trends. The Euro’s momentum suggests it may rise in spot trading, but short-term gains might hit resistance between 1.1380 and 1.1420. We expect a possible retest of the 1.16 area, or even higher towards 1.18 to 1.20. The statements provided involve some risks and uncertainties, intended for informational purposes only. They are not recommendations to trade any assets. Readers should do their own research before making investment decisions. There is no assurance that the information is accurate or timely, and investing carries risks, such as emotional distress and financial loss. The reader assumes all risks related to investing, including the possibility of losing the entire principal amount. The author has no ties to any stocks or companies mentioned and has not received any compensation other than for the article itself. Germany’s GDP revision to a 0.4% growth rate confirmed the strength of the Eurozone’s largest economy. This new data not only provides a fresh perspective but also adjusts expectations on broader European fundamentals. Consequently, the Euro has remained strong on dips, making higher lows even in a volatile trading environment. It’s maintaining firm support just below 1.1340. Ongoing buying interest shows that investor confidence is improving. The previous consolidation limiting upward movement seems to be breaking down. Price action now indicates a possible shift in market structure. The near-term resistance between 1.1380 and 1.1420 could test this shift. A move above this range may encourage broader participation and momentum-based strategies. We are closely monitoring price movements toward the 1.16 mark. If we break through, there is potential to reach the 1.18 to 1.20 range. Traders should remember that such movements rarely occur smoothly. Daily volatility could increase, especially around macroeconomic news or geopolitical events, which may disrupt otherwise clear trends. Some traders have started reducing short positions, and forward volatility structures show slight steepening. For those using derivatives, it’s essential to focus on gamma profiles in the 1W and 2W tenors, especially since implied volatility has decreased. This strategy may allow for cleaner directional moves with more defined risks. Chancellor Scholz’s fiscal policy has not significantly affected near-term growth expectations. German exports and industrial orders are showing signs of stabilization, which strengthens the Euro’s sensitivity to local data improvements. Price reactions may pivot near option barriers just above 1.14—if these levels break with volume, we will need to confirm follow-through towards 1.16 with futures open interest. It’s clear that stop-loss orders are closely clustered around last week’s highs. If these orders get triggered in a low-liquidity window, spot rates could jump rapidly. Therefore, risk-adjusted strategies should consider short-term hedges, and spreads across EUR pairs like EUR/CHF and EUR/GBP may widen if capital flows increase. No model is perfect, but when prices react differently to standard news, we must adapt. Throughout this process, capital preservation remains crucial. Not every market movement is worth pursuing.

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