EUR/USD: nearing yearly high of 1.1776
|EUR/USD Current price: 1.1741
The EUR/USD pair advanced in slow motion at the beginning of the day, regaining the 1.1700 figure ahead of US Q2 GDP, as late Thursday, the US Senate blocked the latest attempt to repeal Obamacare late putting the greenback under selling pressure across the board. Also, backing the common currency was German's inflation, which rose by more than expected in July, according to preliminary estimates. Inflation was up by 0.4% in the month and by 1.7% yearly basis, beating market's expectations. Core annual inflation was also above forecast, but matching June reading at 1.5%. The pair advanced up to 1.1731 during European trading hours, accelerating further higher after the release of US Q2 preliminary GDP showing that the worlds' largest economy grew by 2.6% in the three months to June, although the GDP price index came at 1.0%,well below previous 2.0%, while Q1 GDP was revised lower to 1.2%. Also PCE prices were sharply lower in the second quarter of the year, up just 0.3% from previous 2.2% and the expected 0.5%.
The pair extended its advance up to 1.1752, holding nearby ahead of the US opening, and clearly bullish intraday, given that in the 4 hours chart, technical indicators accelerated north within positive territory, whilst the price extended further above its 20 SMA, which contained declines during the past few sessions. The pair needs now to accelerate beyond its yearly high of 1.1776, to extend its advance towards 1.1800 and beyond during the upcoming hours.
Support levels: 1.1700 1.1665 1.1620
Resistance levels: 1.1775 1.1800 1.1835
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