The EUR/USD pair advanced up to 1.0966 during the Asian session, but the European opening brought another round of dollar's buying, which send the pair down to 1.0920. The pair holds therefore, near the 1.0892 low set late Thursday, following the release of the US advanced second quarter GDP. The figure was not enough to match expectations of 2.6%, but the 2.3% number indeed maintains the FED in the tightening path.
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Just released, the EU inflation figures show that yearly basis it remains at 0.2%, albeit the Core CPI for July came out at 0.9% slightly above expected. The EUR/USD posts a tepid recovery, hovering around the 1.0950 level at the time being, but the technical intraday picture continues to favor the downside, as in the 4 hours chart, the price stands well below a bearish 20 SMA, currently around 1.1000, whilst the technical indicators have corrected partially higher, before resuming their slides below their mid-lines.
At this point, the pair needs to break below 1.0910 to confirm a bearish continuation, with the next short term intraday supports at 1.0880 and 1.0850. Approaches to the mentioned 1.1000 level will likely be seen as selling opportunities, although a break above it may see the pair extending up to 1.1045.
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