EUR/USD bounces off new lows near 1.1130 post-US data

EUR/USD accelerates losses to the 1.1130 area.
US flash GDP surprised to the upside in the fourth quarter.
Claims rose by 260K, Durable Goods Orders down 0.9% MoM.

Pablo Piovano FXStreet

The selling pressure around the single currency picks up extra pace and drags EUR/USD to fresh lows in the proximity of 1.1130 on Thursday.

EUR/USD weaker on upbeat US data

EUR/USD remains well entrenched into the negative territory on Thursday, as the leg lower intensified pari passu with investors’ readjustment to the recent hawkish message from the FOMC and Chair Powell.

In the meantime, the dollar remains well bid and trading in fresh cycle highs when measured by the US Dollar Index (DXY) despite the mixed performance in US yields so far.

Further legs to the buck came after flash GDP figures showed the US economy is seen expanding at an annualized 6.9% in the October-December period. Additional releases saw headline Durable Goods Orders contracting at a monthly 0.9% in December and Initial Claims increasing by 260K in the week to January 22.

EUR/USD levels to watch

So far, spot is losing 0.79% at 1.1152 and faces the next up barrier at 1.1313 (55-day SMA) seconded by 1.1369 (high Jan.20) and finally 1.1456 (100-day SMA). On the other hand, a break below 1.1134 (2022 low Jan.27) would target 1.1100 (round level) en route to 1.1000 (psychological level).

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Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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