EUR/USD drops further near 1.1620 ahead of US GDP

• The pair resumes the downside and test fresh lows in the 1.1620 area.
• The greenback makes another attempt to the 94.90 area.
• ECB’s SPF sees inflation in 2019 at 1.7% (vs. 1.6% earlier).

The bearish sentiment around the European currency remains intact at the end of the week and is now dragging EUR/USD to print daily lows in the 1.1630/20 area.

EUR/USD weaker ahead of US GDP

The pair is intensifying the downside following Thursday’s bearish ‘outside day’ in the wake of the dovish tone by President Mario Draghi at his press conference after the steady stance from the ECB.

It is worth recalling that Draghi noted that a pick in inflation in the region still lacks of sustainable traction. In addition, Draghi stressed that the economy of the bloc still needs considerable stimulus.

EUR has also derived some weakness after the publication of the ECB’s Q3 2018 Survey of Professional Forecasters (SPF), where the GDP was revised down for the current year and 2019 to 2.2% and 1.9%, respectively. Inflation tracked by core HICP is seen unchanged at 1.2% in 2018 and 1.5% next year.

Later in the NA session, the pair should be in centre stage in light of the release of the first revision of the US Q3 GDP figures, seconded by the final print of July’s Consumer Sentiment.

EUR/USD levels to watch

At the moment, the pair is down 0.09% at 1.1633 facing immediate support at 1.1625 (low Jul.27) followed by 1.1575 (low Jul.19) and then 1.1527 (low Jun.28). On the upside, a breakout of 1.1749 (high Jul.23) would open the door to 1.1792 (high Jul.9) and finally 1.1853 (high Jun.14).