- Annual real-GDP in the U.S. grows 4.2% in the second quarter.
- Durable goods orders rise more than expected in August.
- US Dollar Index breaks above 94.50 on upbeat data.
The EUR/USD pair came under pressure in the last hour after the macroeconomic data releases provided an additional boost to the greenback, which was already recording gains against its rivals following yesterday’s FOMC announcements. As of writing, the pair was trading at its lowest level in a week at 1.1685 and losing 0.5% on the day.
According to the third estimate of the U.S. Bureau of Economic Analysis, the real GDP in the U.S. increased at an annual rate of 4.2% in the second quarter of 2018 to match the markets’ expectations. Furthermore, durable goods orders rose by 4.% to beat the analysts’ estimate of 2% and the core personal consumption expenditures grew 2% to come in slightly above the market consensus of 1.9%. Fueled by these reading, the US Dollar Index broke above mid-94s and touched its highest level in 10 days at 94.75. At the moment, the index is up 0.5% on the day at 94.73.
Later in the day, pending home sales and Kansas Fed Manufacturing Index will be featured in the U.S. economic docket. Moreover, ECB President Mario Draghi and FOMC Chairman Jerome Powell will be delivering speeches.
Technical levels to consider
The initial support for the pair could be seen at 1.1665 (20-DMA) ahead of 1.1635 (100-DMA) and 1.1550 (Sep. 7 low). On the upside, resistances are located at 1.1700 (psychological level), 1.1755 (daily high) and 1.1815 (Sep. 24 high).
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