EUR/USD hold weaker near 3-month lows, US GDP awaited

   •  Investors digest Thursday’s perceived dovish ECB taper.
   •  Focus remains on the US GDP growth numbers. 
   •  Any recovery attempts are likely to be short-lived.

The EUR/USD pair now seems to have entered a bearish consolidation phase and was seen oscillating within a 15-20 pips narrow band below mid-1.1600s.

Currently placed at the lower end of the daily trading range, around 1.1625-20 band, traders seemed reluctant to place aggressive bets and preferred to wait for the release of advance US GDP growth number for fresh impetus. 

Meanwhile, the sentiment around the shared currency now seems to have turned bearish in wake of a dovish assessment of Thursday's ECB decision to reduce the size of its monthly asset purchases but extend the program through September 2018. 

Adding to this, a stand-off between the Spanish government and the rebellious region Catalonia, over the latter’s independence campaign, further kept the Euro bulls on the back-foot. 

   •  Catalan crisis: Eyes on 2 crucial meetings in Spain, the political crisis to end?

Moreover, persistent US Dollar buying interest, backed by a renewed uptick in the US Treasury bond yields might further collaborate towards keeping a lid on any meaningful recovery for the major. 

Even from a technical perspective, the pair confirmed a bearish break down on Thursday and hence, remains poised to extend its near-term downward trajectory, even if the US GDP prints just manages to match consensus estimates. 

   •  EUR/USD moved into a bearish phase – UOB

Technical levels to watch

A follow through weakness below the 1.1600 handle is likely to accelerate the slide towards mid-1.1500s before the pair eventually drops to test the key 1.1500 psychological mark.

On the upside, 1.1640 area now seems to have emerged as immediate resistance, above which the pair could extend the recovery, but is likely to be capped at the 1.1700 handle.