EUR/USD challenges daily lows near 1.1640, US GDP on sight

• The pair looks for direction in the bottom of the range near 1.1640.
• The greenback approaches 94.80, or weekly highs.
• US first estimate of Q2 GDP will be the salient event today.

Following Thursday’s ECB-led sell off, EUR/USD is now navigating the bottom end of the weekly range around the 1.1645/40 band.

EUR/USD now looks to US GDP

Spot is struggling for direction at the end of the week following Thursday’s bearish ‘outside day’, all in response to a dovish tone from President Draghi at his press conference after the ECB left unchanged its rates.

In fact, the ECB matched initial estimates yesterday at its meeting, leaving the monetary status quo unaltered. However, President Draghi sounded somewhat unconvinced of the sustainability of the inflation in the region, ,motivating EUR-bears to return to the markets.

Later today, the first estimate of US GDP figures for the April-June period will be the salient event seconded by the final print of US Consumer Sentiment tracked by the U-Mich index.

EUR/USD levels to watch

At the moment, the pair is down 0.03% at 1.1638 facing immediate support at 1.1575 (low Jul.19) seconded by 1.1527 (low Jun.28) and then 1.1508 (2018 low May 30). On the upside, a breakout of 1.1749 (high Jul.23) would open the door to 1.1792 (high Jul.9) and finally 1.1853 (high Jun.14).