EUR/USD selling pressure intensifies, hits fresh session low

Haresh Menghani FXStreet

The shared currency came under renewed selling pressure, with the EUR/USD pair accelerating its downslide to hit a fresh session low near mid-1.0500s.

Thursday's surprisingly dovish decision by the ECB, to taper its month bond purchase program to €60 billion per month and extend QE until December 2017, continues to undermine the shared currency. On the other hand, expectations of faster economic growth in the US, led by aggressive fiscal stimulus by Trump administration, continues to fuel speculations of faster Fed rate-hike action, beyond December meeting, and is lending additional support to the prevalent strong bullish sentiment surrounding the US Dollar.

Traders on Friday will confront the release of Prelim UoM Consumer Sentiment for December in order to grab short-term trading opportunities. However, next week's FOMC meeting remains the next big fundamental trigger influencing and determining the pair's near-term trajectory.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "A break below 1.0580 is what it takes to see further slides today, with the next intraday supports at 1.0540 and 1.0500. A recovery above 1.0630 can see the pair correcting higher towards 1.0670/90, although selling interest will likely surge around this last."

Sell 44%

Buy 56%

Avg Sell Price 1.0751

Avg Buy Price 1.0922

Liquidity Distribution

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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