EUR/USD found thin footing to stage a rebound from a decline into 1.0700, but the high side is looking far away as the pair remains challenged by bearish flows as the US Dollar (USD) finds broad-market support after US inflation figures on Wednesday spooked market sentiment.
European Gross Domestic Product (GDP) figures met expectations, but a lopsided pan-European economy suffering from lagging growth saw the bar set very close to the floor with investors forecasting a flat growth print. EUR/USD sagged into 1.0700 early Wednesday following Tuesday’s US inflation-fueled tumble, and a near-term recovery sees the pair hampered on the bearish side of the 200-hour Simple Moving Average (SMA) near 1.0760.
EUR/USD is on pace for a fourth straight week of decline, and a bearish Friday close will have the pair close lower for five of the last six consecutive trading weeks. The pair is down around 3.7% from December’s peak bids near 1.1140, and bearish momentum continues to drag the pair further down from the 200-day SMA near 1.0830.
