FXStreet (Edinburgh) - The single currency accelerated its downbeat sentiment on Wednesday, dragging the EUR/USD to fresh lows near 1.3370.
EUR/USD softer post-US GDP
The pair is quickly depreciating after the US economy expanded at an annual pace of 4.0% during the second quarter, beating estimates for a 3.0% expansion and up from the 2.1% contraction from the first quarter. Further data showed that inflation tracked by the PCE rose 2.3% inter-quarter, also surpassing forecasts. The greenback is thus intensifying its recent rally, pushing spot to levels last seen in late November 2013. According to Camilla Sutton, Chief FX Strategist at Scotiabank, the technicals look bearish in the near term, adding, “the RSI is at 25, within the 20-30 range typically suggestive of oversold levels. However, the trend is strong and rising, with an ADX at 35 climbing to its highest level since mid-June”.
EUR/USD levels to consider
The pair is now retreating 0.15% at 1.3387 with the immediate support at 1.3359 (low Nov.12 2013) ahead of 1.3345 (low Nov.11 2013) and finally 1.3318 (low Nov.8 2013). On the upside, a breakout of 1.3444 (high Jul.28/29) would target 1.3465 (10-d MA) en route to 1.3475 (high Jul.25).