The EUR/USD pair, which was able to hold the 1.17 mark in the early NA session, lost its footing in the last hour and dropped to a fresh session low at 1.1650. As of writing, the pair was trading at 1.1653, losing 82 pips on the day.
The negative impact of yesterday's FOMC statement on the greenback seems to have eased on Thursday, allowing the US Dollar Index to return to pre-FOMC levels. The index, which touched a fresh 13-month low at 93 in the late Asian session, is now at 93.91, up 0.7% on the day.
Although there were no data from the U.S. today that was significant enough to change investors' mind, short coverings ahead of tomorrow's GDP numbers could be giving the USD an extra boost. The preliminary reading for the second quarter GDP growth is expected to improve to 2.6% on a quarterly basis from 1.4% in the first quarter. A better-than-expected number on Friday could help the DXY extend its gains and allow the index to finish the week higher following two straight weeks of heavy losses.
- USD depreciation reaching short term limits - Westpac
- EUR/USD: momentum to ease near-term; target at 1.22 in 12M - Danske Bank
On the other hand, sentiment data from the euro area will be released on Friday and disappointing numbers could put some selling pressure on the shared currency and further weigh on the pair.
Technical outlook
With today's retreat, the RSI on the daily graph fell below the 70 handle and corrected the oversold readings. 1.1775 (daily high) could be seen as the initial hurdle for the pair ahead of 1.1870 (Jan. 11, 2015, high) and 1.1950 (Jan. 4, 2015, high). On the downside, supports are located at 1.1620 (Jul. 21 low), 1.1500 (psychological level) and 1.1395 (Jul. 12 low).
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays below 1.0700 after US data
EUR/USD stays in a consolidation phase below 1.0700 in the early American session on Wednesday. The data from the US showed a strong increase in Durable Goods Orders, supporting the USD and making it difficult for the pair to gain traction.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold trades on the back foot, manages to hold above $2,300
Gold struggles to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to reverse its direction.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.