The US economy grew at an annualized rate of 2.6% in the fourth quarter, exceeding economists’ consensus of 2.3%. The US dollar has found buying interests and reversed the course against most pairs. We may see increasing strength in the greenback as economic fundamentals have been solid than ever, and considering outlooks from other developed countries, the American currency could be surfing on tailwinds.
On the technical side, EURUSD has met stiff selling pressures near the 61.8% (1.1415) Fibonacci retracement level. 1.1345 is a key short-term support on the downside. On the upside, 1.1375 is the immediate resistance should the euro regain strength.