EUR/USD side-lined near 100-DMA, US GDP, Yellen in focus

Having faded a spike to 1.1200 in the Asian session, the EUR/USD pair extends its side-trend into early European trading, with investors awaiting fresh impetus for next direction.

EUR/USD finds support ahead of 5-DMA at 1.1179

Currently, EUR/USD trades marginally lower at 1.1189, keeping close proximity to session lows struck at 1.1184 earlier today. The main currency pair failed to resist 1.12 handle and came under fresh selling pressure in Asia, largely driven by a renewed bid-wave seen in the US dollar versus its major rivals, following yesterday’s correction, as markets prefer to hold the US currency heading into the US GDP report and Fed Chair Yellen’s speech due later in the NA session. The US dollar, gauged by the US dollar index now hover around 95.20 levels, trading +0.05% higher on the day.

On Thursday, the euro-dollar pair spiked to 1.1217 levels after the US dollar weakened further in response to weaker sub-indexes of the US durable goods report. Looking ahead, in absence of economic data from the Euroland today, markets shift their attention towards the second estimate of Q1 GDP in the US, which is expected to improve to 0.9% from the 0.5% booked in the first estimate. Moreover, the PCE annualized index and consumer sentiment along with the GDP price index will be released.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance at 1.1200 (round number). A break beyond the last, doors will open for a test of 1.1250 (Daily R2/ psychological levels). On the flip side, the immediate support is placed at 1.1100 (200-DMA) below which at 1.1055 (Mar 16 Low) could be tested.