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Jul 29, 2021 6:17 AM

EURUSD heads to 1.1880 key resistance ahead of US GDP Short

Euro Fx/U.S. DollarFXCM

Description

The post-Fed rally of EURUSD pokes a two-week-old resistance line as bulls brace for the preliminary figures of the US Q2 GDP, up for publishing later today. While the stimulus news and FOMC constitute a double whammy attack on the US dollar, suggesting the upside of the adjacent hurdle near 1.1860, bulls are likely to remain unconvinced until the quote stays below 1.1880, comprising multiple levels marked since June 22. The same 1.1880 level also forms the breakout of rounding top bullish pattern and the confirmation of the same will not hesitate to challenge the late June’s peak surrounding 1.1975.

Meanwhile, pullback moves can re-test the 1.1800 threshold but the mid-July lows near 1.1770 will challenge any further weakness. Also acting as the downside filter is the monthly bottom close to 1.1750, a break of which will direct EURUSD sellers to the yearly low of 1.1704. It’s worth observing that the pair’s recovery moves reach the key levels but the RSI is also approaching the overbought territory, suggesting another pullback should the data renew USD buying.
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