EUR/USD breaches 1.1600 on USD GDP

• US flash GDP surprises to the upside in Q3.
• Spot trades below 1.1600 for the first time since July 20.
• Liquidation of EUR longs gathers traction.

The selling pressure around the European currency is now accelerating and dragging EUR/USD to fresh multi-month lows in sub-1.1600 levels.

EUR/USD still weak, buyers remain absent

The pair tested fresh lows in the vicinity of 1.1590 after advanced GDP figures showed the US economy is expected to expand at an annualized 3.0% during the July-September period, surpassing prior surveys.

EUR remains under heavy pressure following the so-called ‘dovish taper’ from the ECB announced on Thursday.

Collaborating with the downside, the situation in Catalonia threatens to get worse, as the unilateral declaration of independence by the Catalan parliament looks imminent.

Further out in the data space, the final U-Mich results for the month of October are next on tap.

EUR/USD levels to watch

At the moment, the pair is losing 0.48% at 1.1596 and a break below 1.1589 (low Oct.27) would open the door to 1.1585 (high Jul.18) and finally 1.1491 (high Jul.12). On the flip side, the next up barrier aligns at 1.1679 (100-day sma) seconded by 1.1759 (10-day sma) and then 1.1837 (high Oct.26).