• 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.
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.