The EUR/USD pair extended its bearish trajectory and dropped its lowest level since May/June 2017 on Thursday on the back of a strong follow-through US Dollar rally. Despite the fact that the Fed is in no hurry to hike interest rates anytime soon, a more dovish tilt by other major central banks across the globe and the incoming stronger US economic data has been fueling the ongoing USD upsurge. The latest positive surprise came from US durable goods order data, which surpassed even the most optimistic estimates and lifted the buck to its highest level in nearly two years.

However, the USD rally lost some steam during the North-American session and helped ease the bearish pressure surrounding the major amid highly oversold conditions. The pair finally settled around 15-pips off session lows and held steady just below mid-1.1100s during the Asian session on Friday as the market enters a wait-and-watch mode ahead of the key release of the advance US Q1 GDP report. The annualized US economic growth is seen easing a bit to 2.1% during the reported period from the previous quarter's final reading of 2.2%, though the forecast might have been upgraded in wake of the recent upbeat US macro data. 

There aren't any major market-moving economic releases from the Euro-zone and hence, the USD price dynamics might continue to act as an exclusive driver of the pair's momentum on the last trading day of the week. 

Looking at the technical picture, the pair already seems to have found acceptance below the 1.1185-75 support, marking 61.8% Fibonacci retracement level of the 1.0341-1.2556 up-move, and hence, remains vulnerable to slide further. Meanwhile, oscillators on the 4-hourly chart remain in oversold territory and warrant some consolidation/corrective bounce. However, any attempted bounce seems more likely to confront immediate resistance near the mentioned support break-point, above which the short-covering move could further get extended towards the 1.1215-20 supply zone.

On the flip side, weakness below the overnight swing low, around the 1.1120-15 region, now seems to drag the pair below the 1.1100 round figure mark towards testing a medium-term descending trend-line support, currently near mid-1.1000s. The mentioned trend-line extends from lows set in Aug./Nov. 2018 and should now act as a key pivotal point for the pair's next leg of a directional move.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD: risk-off taking over on trade war escalation

The American Dollar sold off Friday, following US President Trump´s anger discharge on Twitter. The pair soared to 1.1152, its highest for the week, to finally settle at around 1.1140.

EUR/USD News

GBP/USD: Johnson and Tusk engaged in the blame-game

The GBP/USD pair flirted with the 1.2300 figure late Friday, ending the week with substantial gains around 1.2280, backed by Brexit hopes and the dollar’s broad weakness.

GBP/USD News

USD/JPY: lower lows at sight on the run to safety

The USD/JPY pair sunk Friday, following US President Trump’s fury with China and Fed’s head Powell, as the market rushed into safety. US yield curve inverted again, fears of recession rule.

USD/JPY News

Powell powerless against Trump's trade wars – US braces for recession, USD set to move

"The most powerful central banker in the world" – is how we and others characterize Fed Chair Jerome Powell. While that may be true – monetary policy is reaching its limits – especially in the face of a trade war.

Read more

Gold gains more than $30, eyes 2019 highs on Trump’s tweet

Gold continues to rise sharply amid concerns about the impact of the escalation in the US-China trade war. The demand for safe-haven assets emerged over the last hours, leading to a rally in the yellow metal. 

Gold News

Majors

Cryptocurrencies

Signatures