EUR/USD finds bids once again near 1.1250, Eurozone GDP eyed

• Bears target 2018 lows at 1.1215 amid broad USD comeback, as risk sours.
• German prelim GDP arrives at 0.0% in Q4 vs +0.1% expected
• Dead cat bounce ahead of Eurozone flash GDP, US retail sales and PPI data?

The EUR/USD pair is seen making a minor recovering attempt, having tested the three-month lows of 1.1249 reached a day before, as markets now await the second reading of the Eurozone Q4 GDP for further trading momentum.

The overnight recovery in the spot faced rejection on a couple of occasions just shy of the 1.13 handle and from there the sellers took back charge, sending the rates back to the midpoint of the 1.12 handle amid a sharp rebound staged by the US dollar across its main competitors. The USD index reversed sharply from 97.00 and hit fresh 2-month tops at 97.28, up +0.15% on the day. At the press time, EUR/USD trades almost unchanged at 1.1263 levels.

Despite the renewed uptick, the common currency remains exposed to downside risks amid rising Eurozone growth concerns, especially after the German Q4 GDP numbers arrived at 0.0% q/q versus 0.1% expected. Meanwhile, the sell-off in the 10-year German yields is likely to keep the recovery attempts shallow heading into the Eurozone flash GDP release at 1000 GMT.

EUR/USD levels to watch