EUR/USD suppressed below 1.1300 handle, seems vulnerable

Extending its reversal from Tuesday's swing high near mid-1.1300s, the EUR/USD pair dropped to a fresh session through at 1.1275 and is now just few pips away from Monday's weekly low level of 1.1271.

Tuesday's release of stronger-than-expected new home sales data from the US helped the greenback to pare losses and attracted some selling pressure surrounding the EUR/USD major. The shared currency has failed to benefit from better-than-expected final German GDP print for the second quarter of 2016 and is now trading weak for fourth consecutive session.

Next on tap would be release of existing home sales data from the US, while key focus remains on the Fed Chair Janet Yellen's speech at Jackson Hole Symposium and second estimate of US Q2 GDP growth, both scheduled on Friday.

From technical perspective the pair has decisively broken below a short-term ascending trend-channel and hence, a follow through selling pressure below 50-SMA (4-hourly) should pave way for continuation of the corrective move. 

Technical levels to watch

Sustained weakness below weekly lows support near 1.1270 region is likely to accelerate the slide immediately towards 1.1220 strong support. A clear break below 1.1220 support would turn the pair vulnerable to extend its downward trajectory towards an important confluence support near 1.1180-75 region, comprising of 50-DMA and 100-DMA.

Meanwhile on the upside, ascending channel support break-point near 1.1300-1.1310 area now seems to act as immediate resistance. Any recovery attempts above this immediate support turned resistance area is likely to confront a strong resistance near 1.1340 horizontal zone, which if conquered would negate the bearish bias and assist the pair to resume its near-term bullish trajectory.