EUR/USD dips below 1.0900 to fresh lows after US GDP

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 29, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Córdoba) - EUR/USD edged lower and hit fresh daily lows, following the release of Q4 US gross domestic product numbers.

    US GDP expanded at a 0.7% seasonally adjusted annualized rate in the fourth quarter, just below expectations of a 0.8% increase. The economy had grown 2% in the third quarter and 3.9% in the second quarter.

    However, the soft reading was broadly expected and the dollar faced modest pressure following the release. EUR/USD dropped more than 50 pips and slid to the 1.0865 zone. At time of writing, the pair is trading at 1.0880, still down 0.54% on the day.

    EUR/USD levels to watch

    In terms of technical levels, EUR/USD could find next supports at 1.0869 (20-day SMA), 1.0842 (50-day SMA), 1.0777/70 (Jan 21 & 7 lows) and 1.0710 (Jan 5 low). On the flip side, resistances line up at 1.0979 (100-day SMA) and 1.1000 (psychological level) ahead of 1.1052 (200-day SMA).
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