EUR/USD struggles for direction around the 1.18 area. The dollar remains on the positive path and records 2021 highs. US final Q4 GDP came in at 4.3% QoQ, surpassing consensus. The single currency stays well on the defensive and drags EUR/USD to fresh YTD lows in sub-1.1800 levels on Thursday. EUR/USD in 4-month lows EUR/USD extends the leg lower to levels below the 1.1800 yardstick for the first time since November 2020 on the back of the unabated upside momentum in the greenback. In fact, the prospects of a solid recovery in Europe now appear dented, as investors keep adjusting to the possibility of another wave of the pandemic in combination with increasing lockdown restrictions in several countries. Earlier in the session, the German Consumer Confidence tracked by GfK bettered to -6.2 for the month of April, while Business Confidence in France stayed unchanged at 98 for the current month. Results from the ECB showed that M3 Money Supply expanded 13.3% on a year to January, surpassing forecasts, while Private Sector Loans increased 3.0% from a year earlier. In the US, final Q4 GDP figures noted the economy expanded 4.3% QoQ and Initial Claims went up by 684K WoW during last week. What to look for around EUR EUR/USD remains under heavy pressure and puts the 1.1800 neighbourhood to the test amidst increasing upside pressure around the dollar. In fact, the persistent solid performance of the greenback has been undermining the constructive view in the pair in the past weeks, as market participants continue to adjust to higher US yields, the outperformance of the US economy (vs. its G10 peers) and the deterioration of the morale in Euroland. However, the steady hand from the ECB (despite some verbal concerns) in combination with the expected rebound of the economic activity in the region in the post-pandemic stage is likely to prevent a much deeper pullback in the pair. Key events in the euro area this week: European Council meeting (Thursday and Friday). Eminent issues on the back boiler: Potential ECB action to curb rising European yields. EUR appreciation could trigger ECB verbal intervention, especially amidst the future context of subdued inflation. Probable political effervescence around the EU Recovery Fund. EUR/USD levels to watch At the moment, the index is losing 0.13% at 1.1796 and faces the next support at 1.1791 (2021 low Mar.25) seconded by 1.1762 (78.6% Fibo of the November-January rally) and finally 1.1602 (monthly low Nov.4). On the other hand, a breakout of 1.1989 (weekly high Mar.11) would target 1.2000 (psychological level) en route to 1.2038 (50-say SMA). FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EUR/GBP falls to three-day lows under 0.8600 FX Street 1 year EUR/USD struggles for direction around the 1.18 area. The dollar remains on the positive path and records 2021 highs. US final Q4 GDP came in at 4.3% QoQ, surpassing consensus. The single currency stays well on the defensive and drags EUR/USD to fresh YTD lows in sub-1.1800 levels on Thursday. EUR/USD in 4-month lows EUR/USD extends the leg lower to levels below the 1.1800 yardstick for the first time since November 2020 on the back of the unabated upside momentum in the greenback. In fact, the prospects of a solid recovery in Europe now appear dented, as investors keep adjusting… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.