After yesterday's sharp pull-back of nearly 125-pips, the EUR/USD pair regained some traction on Friday and now looks to move back above the 1.1700 handle during the early European session.
The US Dollar failed to attract any strong follow through buying interest and helped the pair to recover part of previous session retracement from the highest level since Jan. 2015, touched in the aftermath of perceived dovish FOMC statement.
The greenback stalled overnight recovery move and lost some ground on the latest headlines reported by the NY Times, via Reuters, that the US Senate on Friday rejected a new, scaled-down Republican plan to repeal parts of the Affordable Care Act.
• US Senate rejects Skinny reform of Obamacare repeal bill – NY Times
The up-move, however, seemed lacking momentum as the greenback remained supported by Thursday's stellar US durable goods orders, which might have raised hopes for a stronger Q2 advance US GDP print due for release later during the NA session.
Ahead of the US GDP, the prelim German CPI figures would be looked upon for some impetus. Meanwhile, the Minneapolis Fed President Neel Kashkari's speech will grab the spotlight later during the NY session.
• Eurozone inflation figures amongst market movers today – Danske Bank
Technical levels to watch
Momentum above the 1.1700 handle is likely to confront some fresh supply near 1.1720-25 region, above which the pair seems more likely to surpass yesterday’s swing highs resistance near 1.1775 area and aim towards conquering the 1.1800 handle.
On the flip side, mid-1.1600s now seems to have emerged as immediate support, which if broken could trigger a corrective slide even below the 1.1600 handle towards its next support near 1.1555-50 region.
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