- EUR/USD tests daily lows near 1.1130.
- ECB lowered its forecasts for inflation and real GDP.
- US Q2 GDP surprised to the upside at 2.1%.
The shared currency remains on the defensive so far today, with EUR/USD slipping back to the 1.1130 region, or daily lows, in the wake of US data.
EUR/USD remains sidelined, focus shifts to FOMC
The pair has faded yesterday’s gains and remains within the negative territory for the second week in a row.
The bearish price action in spot stays well and sound after US GDP figures came in above estimates for the second quarter. In fact, advanced GDP figures now see the economy expanding at an annualized 2.1% vs. 1.8% initially forecasted.
In the meantime, EUR/USD keeps the sideline theme unchanged as market participants have now shifted their focus to the upcoming FOMC meeting. Despite consensus among traders sees the Fed cutting rates by 25 bps, the greenback managed to keep its poise on the back of rumours citing the possibility that the Fed could not sound as dovish as expected.
EUR/USD levels to watch
At the moment, the pair is losing 0.10% at 1.1135 and faces immediate contention at 1.1101 (2019 low Jul.25) seconded by 1.1021 (high May 8 2017) and finally 1.0839 (monthly low May 11 2017). On the other hand, a break above 1.1236 (55-day SMA) would target 1.1286 (high Jul.11) en route to 1.1307 (200-day SMA).
Share
