Strong U.S GDP Pushes Dollar High Against Euro
Capitol Academy | Dec 24, 2014 04:17AM ET
EUR/USD pair dropped below $1.2200-level following revised GDP data showing third quarter U.S. economy growth is strong. This increases pressure on the Federal Reserve to raise interest rate in U.S. The European Central Bank and Bank of Japan are heading toward further easing while the Fed has to tighten.
As we previously expected EUR/USD prices declined toward $1.2170 to find support just above the downtrend line. A drop below the support line will open the way for further decline. The outlook remains bearish, so any rally to resistance lines provides opportunity to intraday traders to short the pair with a major target at $1.2040.
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