EUR/USD keeps 1.2200 post-US GDP

• The pair keeps the trade above the 1.2200 handle so far.
• US flash Q4 GDP figures matched expectations at 2.5%.
• US 10-year yields found support in the 2.88% area.

The bid tone around the greenback continues to keep EUR/USD under pressure just above the key support at the 1.2200 handle.

EUR/USD offered on USD-buying

The pair tays entrenched into the negative territory today, extending the weekly bearish note to the test the critical support at 1.2200 the figure following the strong pick up in the sentiment around the buck.

In addition, today’s advanced figures for US GDP figures showed the economy is expected to expand at an annualized 2.5% during the fourth quarter, matching initial forecasts.

The data, albeit in line with consensus, add to yesterday’s strong reading from the CB’s consumer confidence, all lending extra legs to the buck and thus putting spot under extra pressure.

In the meantime, the pair could now shift to the more relevant support at 1.2165 (January 18 low) in case the greenback accelerates its upside momentum, while markets appear to have now looking once again to the Fed-ECB policy divergence as main driver behind the price action.

EUR/USD levels to watch

At the moment, the pair is losing 0.11% at 1.2219 and a breach of 1.2199 (low Feb.28) would open the door to 1.2167 (50% Fibo of 2014-2017 drop) and finally 1.2165 (low Jan.18). On the flip side, the next hurdle lines up at 1.2334 (10-day sma) seconded by 1.2349 (21-day sma) and then 1.2537 (high Jan.25).