EUR/USD spikes through 1.0700 handle after dismal US GDP and durable goods

The EUR/USD pair      following the release of US economic releases.

Currently trading around 1.0700 handle, the pair caught fresh bids after data released from the US showed economy grew an annualize pace of 1.9% during the last quarter of 2016. The reading was weaker than 2.2% growth expected worse-than 3.5% growth recorded in Q3. 

Meanwhile, durable goods orders for December also disappointed and came-in to show a m-o-m contraction of 0.4% as compared to 2.6% consensus estimates and a sharp contraction of 4.5% reported in November. 

Today’s economic data extended little support to the US Dollar’s ongoing recovery move from Thursday’s 7-week lows, helping the pair to clear 1.0700 handle. 

The USD price dynamics would remain an exclusive driver of the sentiment surrounding the major and hence, focus would remain on the release of revised UoM Consumer Sentiment Index, due later during NY session.

Nevertheless, the pair seems all set to snap six consecutive weeks of winning streak and record its first weekly decline of 2017. 

Technical levels to watch

Sustained momentum above 1.0700 handle could get extended towards 1.0720 resistance above which the pair seems all set to make a fresh attempt towards clearing a strong hurdle near 1.0770 area. On the fli side, retracement back below mid-1.0600s is likely to turn the pair vulnerable to head back towards 1.0600 handle ahead of 50-day SMA support near 1.0585-80 region.