XtreamForex

EUR/USD looks to regain 1.0875 ahead of EZ CPI, US GDP

The EUR/USD pair found support once again near 1.0855 region, and attempted a minor-bounce from there in a bid to regain 1.0875 amid waning US dollar demand across the board.

The greenback came under fresh selling pressure against most its major peers, following headlines from the US President Trump on North as well as on South Korea. Also, reports of the US House delaying the Trumpcare bill again until next week weighed down on the sentiment around the buck, lifting the EUR/USD pair.

However, the bulls lack momentum, despite persisting risk-off moods, as a dovish tone maintained by the ECB continues to hurt the Euro. The ECB left the monetary policy settings unchanged at its policy meeting a day before, noting that the governing council hadn’t discussed a QE exit strategy and reiterated that bank could extend the QE beyond 2018 if necessary.

Looking ahead, the US Q1 GDP figures and French election R2 will remain the two biggest drivers for the spot, with the US advance GDP data expected to come in at 1.3% q/q versus 2.1% last. BBG Survey: US Q1 GDP seen bouncing back but not reaching Trump’s target

In the meantime, the German retail sales, Eurozone flash CPI estimate and money supply data will be eyed for fresh impetus on the prices.

EUR/USD Technical Levels

Technical resistances for the pair are aligned at 1.0920/33 (classic R1/ Apr 27 high), 1.0950/51 (psychological levels/ 5-month tops) and finally 1.1000 (key resistance). On the flip side, the spot finds next support at 1.0857/50 (daily & Apr 27 low), a break below that level could open the door to 1.0820/19 (10-DMA/ Apr 24 low) and 1.0802 (classic S2/ Fib S3).