- The US Gross Domestic Product this Thursday keeps the Euro under pressure.
- In the New York session, the Fiber had a bullish spike which spanned the whole daily range after comments from ECB's Knot.
- The level to beat for bears is the 1.1052 support followed by the 1.1033 level.
EUR/USD daily chart
On the daily time-frame, the common currency is trading in a bear trend below the main daily simple moving averages (DSMAs). Earlier in the New York session, the US Gross Domestic Product Annualized (GDP) came in line with expectations at 2% in the second quarter. In the London session, the German inflation in August (YoY) came below expectations at 1% vs. 1.2% forecast by analysts.
EUR/USD 4-hour chart
The Euro is under bearish pressure below the main SMAs as the market reached new weekly lows this Thursday. The Fiber broke below the 1.1052 support; however, it retraced back above it into the New York close. The potential for a move down towards 1.1033 and 1.1016 levels is still on the cards, according to the Technical Confluences Indicator.
EUR/USD 30-minute chart
EUR/USD is trading below the main SMAs, suggesting a bearish momentum in the near term. Immediate resistances are seen at 1.1080, 1.1098 and 1.1117 levels, according to the Technical Confluences Indicator. Earlier in the New York session, the Fiber had a bullish spike which covered the whole daily range in two minutes only to be retraced afterward. ECB's Knot said there was "no need to resume a Quantitative Easing program" and "the ECB's September meeting exactions are overdone."
Additional key levels
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EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
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Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
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Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
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