EUR/USD resumes slide on Dollar strength, eyes 1.2300

• US dollar extend gains, having best day in weeks. 
• EUR/USD drops more than 150 pips from yesterday’s high.

The EUR/USD pair dropped further during the US session and reached at 1.2312, the lowest since last Friday. 

EUR/USD resumes slide after brief pause 

Another wave of USD buying ended the pause of EUR/USD. The pair was consolidating between 1.2330/55 and broke to the downside, falling quickly to 1.2315. It was holding near the lows, under pressure. 

During the last hours the euro lost strength, favoring a retreat in EUR/GBP and EUR/CHF.

The greenback continues to be the top performer. US data release today favored the greenback. US Q4 GDP growth came in above expectations (2.9% vs 2.7%) while Pending Home Sales rebounded 3.1%. On Thursday the Personal Income and Spending report is due (including the PCE core). 

More recently, Raphael Bostic, President of the Federal Reserve Bank of Atlanta, said he thinks that the interest rate should get back to the neutral level. He added that a gradual approach is better than big jumps. 

Level to watch 

EUR/USD has fallen more than 150 pips from yesterday’s highs, making a sharp reversal. The slide takes places from a relevant long-term dynamic resistance, near 1.2460/80: a downtrend line. A consolidation on top would clear the way to more gains. On the downside, below 1.2300 the next support is seen at 1.2290 followed by 1.2260.