EUR/USD looks vulnerable below 20-DMA, US GDP eyed

The bears are back in control, fuelling a minor sell-off in EUR/USD from daily highs of 1.0689, as we progress towards the European opening bells amid holiday-thinned trading.

EUR/USD makes lower tops on daily sticks

Currently, the spot now trades -0.08% lower at 1.0670, eyeing a test of daily lows struck at 1.0663 in early Asia. The main currency pair is seen extending its previous decline amid notable USD demand across the board, as the European traders hit their desks and gear up for another round of US dataflow, including the Q4 GDP report, durable goods and consumer sentiment data.

In the meantime, the EUR/USD pair will take cues from the sentiment on the European markets, as the EUR calendar remains data-light. While we have the ECOFIN meetings that could have some impact on the shared currency. Also, Trump-headlines will be closely eyed for fresh incentives on the USD dynamics.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0702 (10-DMA). A break beyond the last, doors will open for a test of 1.0720 (5-DMA) and from there to 1.0773 (7-week high). On the flip side, the immediate support is placed at 1.0645 (20-DMA) below which 1.0600 (key support) and 1.0573 (50-DMA) could be tested.