Technical Analysis: EURUSD extends post-Fed losses, US GDP in focus
Fed’s dovish halt and ECB policymakers hint favoring further negative rates dragged EURUSD below 50-day SMA for the first time since early November the previous day. The bears are currently eyeing a horizontal area comprising lows marked during December and the present month, around 1.2060-50. However, the preliminary readings of the US Q4 GDP can exert additional downside pressure to break the key support zone and test a 100-day SMA near 1.1950. It should, however, be noted that the November 09 top near 1.1920 can challenge the pair’s further downside.
In a case where the US GDP surprise markets with better-than-forecast figures, EURUSD can combat the 50-day SMA level of 1.2120 but a falling trend line from January 06, at 1.2155 now, will challenge the bulls afterward. Also acting as an upside barrier is the last week’s peak near 1.2190 and the 1.2200 round-figure. If at all the quote rises past-1.2200 threshold, it’s the run-up to the monthly peak surrounding 1.2350 can’t be ruled out.