EUR/USD Forecast: Likely To Test Sub-1.17 Level, German CPI And US GDP Eyed

The Greenback's recent rally got an additional boost from Wednesday's stronger-than-expected durable goods orders, which added to prospects for a Fed rate hike action in December. This, coupled with optimism over President Donald Trump's proposal for the biggest US tax overhaul in three decades lifted the key US Dollar Index to one-month highs on Wednesday. Meanwhile, the selling pressure around the shared currency remained unabated, with the EUR/USD pair falling to its lowest level since August 18.  

The pair traded with negative bias for the fourth consecutive session through the Asian session on Thursday as traders now look forward to the release of Prelim German CPI figure for some immediate respite. Later during the North American session, investors will get some more economic data from the US to digest, with the final reading on second quarter GDP and the usual weekly jobless claims being the key highlights. 

With short-term indicators still far from being in oversold territory, the pair's bearish break down below the 50-day SMA and a 4-week old trading range is more likely to get extended toward sub-1.1700 levels. Weakness below the mentioned handle is likely to find support near the 1.1675-65 region, marking 23.6% Fibonacci retracement level of the pair's up-move from yearly lows to multi-month tops. A convincing break below this immediate important support would open room for extension of the pair's near-term corrective slide.

Meanwhile, on the upside, sustained recovery back above mid-1.1700s could get extended toward the 1.1800 handle but any subsequent up-move now seems to be capped at support break-point, turned strong resistance, near the 1.1835 region.