EUR/USD falls further, retraces most of its weekly gains

By FXStreet FXStreet (Córdoba) – EUR/USD has continued to fall during the New York session and has erased in a couple of hours most of its weekly gains.

EUR/USD came under pressure as the greenback strengthened across the board despite a below-expectations US GDP reading, and dropped below the 50-day SMA to a fresh 3-day low of 1.0833 in recent dealings.

Data showed US economy expanded by 0.7% in the fourth quarter, versus 0.8% expected. On the other hand, the Chicago PMI jumped to 55.6 in January, from 42.9 the previous month and above 45.3 expected.

EUR/USD levels to watch

At time of writing, the pair is trading at 1.0838, 0.91% or 100 pips below its opening price. As for technical levels, immediate supports are seen at 1.0777/70 (Jan 21 & 7 lows) and 1.0710 (Jan 5 low) ahead of 1.0636 (Dec 1 & 2 highs). On the other hand, resistances line up at 1.0979 (100-day SMA) and 1.1000 (psychological level) ahead of 1.1052 (200-day SMA).
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Source:: FX Street