EUR/USD headed for first weekly close above 1.17 since Jan. 2015

The EUR/USD pair is preserving its daily gains as we move closer to the end of the week. As of writing, the pair is trading at 1.1750, up 0.63% on the day, having posted a daily high at 1.1764 and low at 1.1671.

On a weekly basis, the pair is adding nearly 100 pips and is looking to close the third week in a row with gains. Looking at the monthly chart, we also see that the pair is up more than 300 pips after starting the month at low-1.14s. It's clear that the pair's upsurge this week had been fueled by the uninterrupted selling pressure witnessed on the greenback. On Wednesday, the FOMC couldn't use the opportunity to trigger a recovery move as it refrained from giving any optimistic hints regarding the inflation growth and the economic activity.

• USD: Fallen in anticipation of a lower Fed rates path, but outlook still solid - AmpGFX

Nevertheless, following the FOMC statement on Wednesday, experts speculate that the Fed is going to start shrinking its $4.5 trillion portfolio of Treasury bonds and mortgage-backed securities in September, which could finally give the USD a breath of fresh air. Furthermore, speaking to a business group in Woodbury, Minnesota, Minneapolis Fed President Neel Kashkari argued that the balance sheet was not doing a lot to boost the economy right now.

• Fed's Kashkari: Need to address low-inflation issue with interest-rate policy

Following a modest correction on Thursday, which was supported by the trade balance data that ramped up the expectations for a robust GDP growth reading today, the US Dollar Index turned south in the NA session and refreshed its daily low at 93.11. At the moment, the index is at 93.13, losing 0.67% on the day. Although the preliminary result for the second quarter real GDP growth met the general consensus by increasing to 2.6% from 1.2% in the previous quarter, wage growth figures and soft PCE prices weakened the case for the Federal Reserve to stay on its aggressive tightening path.

• US: Real GDP increased at an annual rate of 2.6% in second quarter of 2017
• US: PCE price index increased 0.3 percent in second quarter

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, writes, "from a technical point of view, the bullish bias remains firm in place, as despite being overbought, there are no signs that the upward momentum is exhausted, or about to ease. In the daily chart, the price is nearing the top of a daily ascendant channel coming from mid-May, in the 1.1810/20 region for the upcoming week, whilst technical indicators resumed their advances after a modest correction of overbought conditions."

She further adds, "beyond the mentioned 1.1820 region, speculative interest will likely try to push it towards the 1.2000 threshold, a major psychological level before deciding to take some profits out of the table. To the downside, 1.1710 comes as an immediate support, followed by 1.1612, the weekly low and also 2016 high. A downward acceleration below this last could indicate a steeper downward correction towards the critical 1.1460 area."