EUR/USD vulnerable, consolidates losses near 1.1650

• EUR/USD finds support around the 1.1650, holds a bearish tone. 
• After Trump/Junker meeting and ECB, attention turns to US Q2 GDP. 

The EUR/USD pair bottomed at 1.1648, the lowest level in six days. The recovery from the lows was short-lived and price remains near the low, down 70 pips for the day, having the worst performance in almost a month. 

The main driver was the strength of the US dollar. During Draghi’s press conference after the ECB meeting, the euro weakened but the managed to recover part of its losses. The central bank announced nothing new as expected and markets remained muted. 

The main theme continues to be the global trade war lead by Donald Trump but tomorrow attention will turn again to US data. The first estimate of Q2 growth is due. Recent comments from US official suggest that the rate will be near 5%, above market consensus (4.1%). 

Technical levels 

The pair has formed a potential double top in the very short-term near the 1.1750 area. In that scenario, EUR/USD broke the neckline after the ECB meeting and the bearish target lies slightly below 1.1600. 

To the downside, the immediate support is seen at the 1.1650 area, followed by 1.1635 and 1.1600. On the upside, resistance could be located at 1.1675, 1.1705 and 1.1725/30.