EUR/USD is currently testing the 21 November high and continues to trade above the 200-day simple moving average (SMA). The bullish run may face another test in the form of US GDP data (second estimate) later this week after estimates point to an even hotter Q3 performance from the world’s largest economy – potentially weighing on the recent bullish EUR/USD momentum.
Better than expected EU inflation data (lower than forecasts) could also provide a catalyst for a pullback alongside other signs of slowing momentum provided by the RSI about to enter overbought territory and the MACD heading for a bearish crossover.
