EUR/USD clings to lows near 1.0630, EZ CPI on sight

The EUR/USD pair keeps the offered tone intact in the early European trading, mainly driven by upbeat US GDP data-led broad based strength in the greenback.

EUR/USD deflates from 1.0660                                                                         

Currently, EUR/USD trades -0.16% lower at 1.0633, hovering within a striking distance of daily lows struck at 1.0628 in the last hour. The main currency pair is seen consolidating the latest move lower from session tops of 1.0660, as the USD bulls continue to ride higher on the better-than expected US Q3 GDP report wave, which brings back divergent monetary policy outlooks between Fed and ECB to the forefront.

An upward revision to the third quarter US growth figures sealed in a Dec Fed rate hike and bolstered the case for faster pace of Fed rate hikes in next year. While ECB Draghi’s latest testimony revealed that the central bank’s head is concerned about looming risks to the Eurozone economy, while adding that ECB will remain committed to preserve the very substantial degree of monetary accommodation necessary" to raise inflation toward the bank's goal of just under 2%.

On the data-front, we have a busy session ahead, with the German jobs data due on the cards ahead of the Eurozone flash CPI estimate and ECB Draghi’s speech. While in the North American session, the US ADP jobs, Core PCE price index and pending home sales will be published, besides, FOMC member Powell’s speech.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0660 (daily high). A break beyond the last, doors will open for a test of 1.0685 (weekly high) and from there to 1.0700 (round figure). On the flip side, the immediate support is placed at 1.0604 (10-DMA) below which 1.0561 (Nov 28 low) and 1.0535 (Nov 25 low) could be tested.