EUR/USD plummets to lows, below mid-1.2300s

   •  Upwardly revised US GDP print provides an additional boost to USD recovery.
   •  A follow-through selling might now negate any near-term bullish bias.

The EUR/USD pair finally broke down of its European session trading range and tumbled to fresh multi-day lows, below mid-1.2300s in the past hour.

In what could be said as a late reaction to an upward revision of the US GDP growth numbers, a strong follow-through pickup in the US Dollar demand was seen as one of the key factors behind the pair's latest leg of sudden fall of around 50-pips.

Adding to this, possibilities of some short-term trading stops been taken out, on a break below Tuesday's swing low level of 1.2372, seems to have further collaborated towards aggravating the selling pressure over the past couple of hours. 

The pair has now retreated back to a short-term descending trend-line resistance break-point now turned support, which if broken might negate any near-term bullish bias and pave the way for additional weakness. 

Moving ahead, the scheduled speech by Atlanta Fed President Raphael Bostic might influence the USD price dynamics and provide some fresh impetus during the NY trading session.

Technical outlook

Valeria Bednarik, American Chief Analyst at FXStreet writes: “The 4 hours chart for the pair shows that it can't recover above a bullish 20 SMA, but also that the downward potential is limited, as technical indicators hold right above their mid-lines. Upcoming moves will be more related to stocks behavior rather than the recent releases, with a break below 1.2370 leaning the scale toward the downside for the rest of the day.”