EUR/USD sinks to fresh year lows on back of impressive GDP readings – FXStreet

FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet, notes that the EUR/USD pair sunk to fresh year lows below 1.2180 on the back of impressive US GDP readings, up to 5% in the final revision of the Q3, the best reading in over a decade.

Key Quotes

“With further US data yet to be released, local indexes futures soared to record highs ahead of the opening, also supporting the dollar’s advance. Overall, the dollar bullish trend remains firms in place despite the low intraday volumes, and the EUR/USD 1 hour chart supports further declines as the price is extending below a bearish 20 SMA and indicators heading south below their midlines.”

“In the 4 hours chart indicators had turned back south deep in negative territory, with RSI extending its decline around 25. Upcoming US housing and consumption readings hold the key to fresh lows, as if the numbers continue to be encouraging, the slide can extend down to 1.2150.”

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