According to Eurostat’s report for Q4 2011, the eurozone is on the verge of falling into recession once again. Its GDP shrunk by 0.3% over the given period. Italy, the eurozone’s 3rd economy, is already in recession.
A GDP decline seen over 2 consecutive months is considered to be the major condition for a technical recession. Consequently, the Italian economy officially entered a recession after declining by 0.7%.
Year-over-year, the eurozone economy has grown by 0.7%. However, if to compare the quarterly data, there is a slowdown. The eurozone’s GDP increased by 1.5% in 2011, according to the preliminary report given by Eurostat.
As for the common European currency, the recent decline of EURUSD wasn’t supported by volume, the experts of report.
At this point, the closest strong level of support is located at 1.3046. This is biggest volume cluster for the contract. In case the price rebounds from the level (once supported by BCA), it will probably initiate a rally. Otherwise, if it breaks below the mentioned level of support, the downtrend will probably be continued. The closest level of resistance is 1.3110.
