EUR/USD refreshes session lows, around mid-1.1800s
• Investors digest downward revision of US GDP.
• USD rebounds and prompts fresh selling.
• Technical studies point to additional downslide.
The EUR/USD pair quickly reversed the US data-led uptick and held closer to the lower end of its daily trading range.
The pair did get a minor lift after the third quarter US GDP growth was revised lower to 3.2% annualized pace. Despite a slight downward revision, the economic growth still stood at its highest level since Q1 2015.
Adding to this, a surprisingly stronger Philly Fed Manufacturing Index helped the US Dollar to bounce back to the 93.00 handle and kept a lid on the pair's modest recovery attempt.
With the key US macro data out of the way, broader market sentiment surrounding the greenback should act as an exclusive driver of the pair's momentum through the NY trading session.
From a technical perspective, the pair has now slipped below 50-SMA support on the 1-hourly chart and now seems all set to extend previous session's rejection slide from the 1.1900 handle.
Technical outlook
Valeria Bednarik, American Chief Analyst at FXStreet writes, "in the 4 hours chart, the price is well above its moving averages, with the 20 SMA heading north above the larger ones, and technical indicators holding near overbought readings. Furthermore, the pair has bounced from the 61.8% retracement of its latest bearish run, another sign of bulls determination."
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
