EUR/USD falls back below 1.1700 handle amid re-emerging Turkish crisis

   •  A modest USD rebound prompts some selling in the last hour or so.
   •  Turkish Lira crisis weigh on EUR and add to the downward pressure.
   •  Further downside remains limited ahead of flash German CPI print.

The EUR/USD pair faded an early European session bullish spike and quickly retreated around 40-45 pips from an intraday high level of 1.1718.

The pair struggled to build on the overnight positive momentum and remained capped below four-week tops set on Tuesday amid a modest pickup in the US Dollar demand supported by an upward revision of the US GDP growth figures on Wednesday.

Meanwhile, reemerging Turkey's currency crisis exerted some additional downward pressure on the shared currency and further collaborated to the pair's weaker tone. In fact, the Turkish Lira extended its decline on Thursday and was down nearly 2.5% against the US Dollar, with the USD/TRY pair moving beyond 6.50 level and triggering typical safe-haven flows into the greenback. 

The downside, so far, has been limited and the pair has managed to find some support ahead of precious session's swing low level of 1.1652 as market participants now look forward to the release of flash German CPI figures. 

This coupled with the US macroeconomic releases, which includes the core PCE price index, personal income/spending data and the usual initial weekly jobless claims might also help traders grab some short-term opportunities.

Technical levels to watch

Immediate support remains near mid-1.1600s, below which the pair is likely to accelerate the fall back towards the 1.1600 handle before eventually dropping to its next major support near the 1.1535-30 region.

On the flip side, any up-move beyond the 1.1700 handle might continue to face resistance near the 1.1740-50 region, which if cleared should pave the way for an extension of the pair's near-term bullish trajectory.