EUR/USD Outlook: Bears Take A Breather Above New 22-Mth Low Ahead Of US Data

Technical analysis of Forex market

The Euro is consolidating above new multi-month low at 1.1118 (also low of 20 Jun 2017) on Friday, following strong bearish acceleration in past three days, when the single currency lost 1.1%.

Broadly stronger dollar keeps the Euro under pressure, which is reinforced by weaker than expected data from Germany and break of pivotal Fibo support.

Bearish studies on daily / weekly chart add to negative outlook, as the pair is on track for second consecutive bearish weekly close.

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Test of 1.1118 support unmasks targets at 1.1070 (the neckline of asymmetric Head & Shoulders pattern on weekly chart) and psychological 1.10 support.

Markets await release of US Q1 GDP data, due later today, for fresh signals, which could further boost dollar, on better than expected results.

Forecasts show 2% rise in the first quarter, compared to 2.2% in Q4 2018 and markets expect data to underline steadiness in economic recovery, as recent US data have eased fears about strong slowdown if the economy.

The price may recover further as traders take profit of three-day fall ahead of data, which would provide fresh signal.

Broken key supports at 1.1180 mark initial resistance, followed by falling 10SMA (1.1225) which is expected to cap and keep bears in play.

Res: 1.1147, 1.1186, 1.1200, 1.1225
Sup: 1.1118, 1.1070, 1.1058, 1.1000

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