EUR/USD Forecast: Immediate Outlook Remains Bullish, Looks Into US GDP For Fresh Impetus

The US Dollar rebounded sharply on Tuesday, supported by easing worries about a global trade war and prompted some profit-taking off the EUR/USD major. The pair retreated from an intraday high level of 1.2477 and was further weighed down by comments by the ECB officials, stressing the need to maintain patience in removing stimulus. This coupled with the third straight month of drop in the Euro-zone economic confidence indicator, coming in at 112.6 for March as compared to previous month's reading of 114.2, kept exerting downward pressure on the shared currency. 

The pair has managed to bounce off lows and retake the 1.2400 handle during the Asian session on Wednesday, albeit lacked any strong follow-through momentum. Investors now look forward to the final US Q4 GDP print, which is expected to be revised higher from 2.5 percent annualized growth estimated in the preliminary report. Better-than-expected reading could provide a minor boost to the greenback but is unlikely to significantly change market sentiment. 

From a technical perspective, the near-term bullish outlook remains and is further reinforced by the reemergence of dip demand below the 1.2400 handle. Moreover, the recent break through a descending trend-line hurdle further adds credence to positive bias and hence, the pair seems poised to make a fresh attempt toward reclaiming the key 1.2500 psychological mark.

On the flip side, any follow-through retracement is likely to find fresh buying interest at the descending trend-line resistance break-point, now turned support, currently near the 1.2340-35 region. A convincing break below the mentioned support might negate the bullish setup and prompt some additional weakness in the near-term.