EUR/USD drops further post US GDP, 1.18 closer

• Spot recorded fresh lows near 1.1810 post-US data.
• US yields pushing higher beyond 2.37%.
• Yellen’s testimony under way.

The shared currency remains under pressure in the wake of US data releases, with EUR/USD briefly printing fresh weekly lows in the 1.1815/10 band.

EUR/USD weaker on upbeat US GDP

The pair gained extra downside momentum after the second revision of US GDP showed the economy is now expected to expand at an annualized 3.3%, surpassing estimates and up from the previous revision.

In addition, at her testimony before Congress, Chair J.Yellen argued that the monetary policy is not pre-set, adding that there are almost no market effects from the reduction of the balance sheet.

Next on tap in the US docket will be October’s pending home sales along with the speech by San Francisco Fed J.Williams (2018 voter, centrist) and the publication of the Fed’s Beige Book.

EUR/USD levels to watch

At the moment, the pair is losing 0.08% at 1.1830 facing the next support at 1.1818 (low Nov.29) followed by 1.1776 (55-day sma) and finally 1.1713 (low Nov.21). On the other hand, a breakout of 1.1961 (high Nov.27) would target 1.2033 (high Sep.20) en route to 1.2069 (high Aug.29).