EUR/USD remains near session highs above 1.17 as greenback weakens
|After the initial spike to 1.1753 post GDP data release in the early NA session, the EUR/USD pair eased to 1.1715 before regaining traction. As of writing, the pair was trading at 1.1735, up 0.5%, or 58 pips, on the day.
The US Dollar Index, which fell to a session low of 93.23, is having a difficult time taking back its losses and is now at 93.35, losing 0.45% on the day. Although today's data from the U.S. showed that the second quarter GDP growth (preliminary) increased to 2.6% from 1.2%, the fact that the personal consumption expenditure prices and employment cost index came in below the market consensus' caused the greenback to lose strength against its rivals. The PCE prices plummetted to 0.3% from 2.2% in Q2 and employment cost index eased to 0.5% from 0.8% for the same time period.
On the other hand, the bullish momentum of major equity indexes in the U.S., which was able to support the USD recovery lately, seems to have faded away on Friday. At the moment, the Dow Jones Industrial Average is losing 0.1% while the S&P 500 is down 0.3%.
Other data released by the University of Michigan in the session revealed that the preliminary reading for July Consumer Sentiment Index improved to 93.4 from 93.1, but was largely ignored by the markets. Minneapolis Fed President Neel Kashkari, a known dove, will be giving a speech later at 17:20 GMT.
Technical outlook
The RSI on the daily graph once again moved above the 70 mark on Friday, showing overbought conditions for the pair. 1.1775 (Jul. 27 high) could be seen as the first technical resistance ahead of 1.1870 (Jan. 11, 2015, high) and 1.1950 (Jan. 4, 2015, high). On the downside, supports align at 1.1620 (Jul. 21 low), 1.1500 (psychological level) and 1.1395 (Jul. 12 low).
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