The EUR/USD pair is trading lower in negative territory, as the dollar bulls begin to dominate the currency market landscape. Today’s US Fundamental data reported 2nd Quarter GDP showing the economy expanded by 3.7% on an annual basis, which is greater than the market forecast of only 2.3% annualized growth for the second quarter. The Euro slid 162 pips in comparison to the greenback, falling from the session high at 1.1365 to the session low at 1.1203, which is serving as psychological support for the common currency.
EUR/USD is currently in a corrective phase after finding key support at the 1.1200 psychological zone, and it appears to be well-supported ahead of the market close. If price continues to hold this support, then this will signal the presence of strong demand at this level, and we may see a correction up to the 1.1263/64 level, which is the 38.6% fibonacci retracement level of today’s sell-off, and this week’s pivot point level. The common currency is now consolidating at 1.1251, and may trade within a tight range into today’s market close.
Marvin Perry has been an active trader within the Forex market since 2010. He attended the University of Illinois in Urbana/Champaign, and graduated in 2002 with a double major in Cell and Structural Biology and Chemistry. He currently serves as an FX instructor & Quantitative Analyst for the Forex Anatomy Private Trading Community called "The Lab", where he conducts live weekly trading webinars & instruction on Fundamental Analysis & Inter-Market Interpretations of dynamic asset classes and their influence on currencies.