EUR/USD enters a consolidation phase around 1.1400 handle

The EUR/USD pair had a muted reaction to the revised US growth numbers and extended its consolidative price action within 20-25 pips narrow trading range around the 1.1400 handle.

The pair on Thursday touched fresh yearly tops near 1.1435 level and continued benefitting from the recent hawkish comments by the ECB President Mario Draghi. Markets largely ignored Wednesday's ECB headlines regarding misinterpreting Draghi's remarks on stimulus, with the pair extending its upsurge for the third consecutive session.

Meanwhile, today's preliminary release of German CPI, showing that prices are expected to rise at an annualized pace of 1.6% and 0.2% m-o-m remained supportive of the prevailing bullish sentiment surrounding the shared currency.

   •  Germany: Inflation surprise - ING

Even an upward revision of the US GDP print, now showing that the economy expanded at an annualized pace of 1.4% during the first quarter of 2017 as against 1.2% initially estimated, which although provided some respite for the US Dollar but did little to trigger any meaningful corrective slide around the major.

Later during the day, St. Louis Fed President James Bullard’s comments would now be looked upon for some fresh trading impetus.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes: “In the 4 hours chart, technical indicators are actually retreating but still within overbought territory, whilst the 20 SMA maintains its sharp bullish slope far below the current level, still accelerating beyond the larger ones. The pair has an immediate support at 1.1380, with a break below it favoring a continued decline that anyway won't change the dominant bullish stance.”